Blackberry 2010 Annual Report Download - page 92

(b) Certain statement of cash flow information related to interest and income taxes paid is summarized as follows:
February 27,
2010
February 28,
2009
March 1,
2008
For the year ended
Interest paid during the year.................................................................................................. $ – $ 502 $ 518
Income taxes paid during the year ........................................................................................ $1,081,720 $946,237 $216,095
(c) The following items are included in the accrued liabilities balance:
February 27,
2010
February 28,
2009
As at
Marketing costs......................................................................................................................................... $ 91,554 $ 91,160
Vendor inventory liabilities......................................................................................................................... 125,761 18,000
Warranty ................................................................................................................................................... 252,316 184,335
Royalties.................................................................................................................................................... 383,939 279,476
Rebates ..................................................................................................................................................... 146,304 134,788
Other ......................................................................................................................................................... 638,386 530,843
$1,638,260 $1,238,602
Other accrued liabilities as noted in the above chart, include, among other things, salaries, payroll withholding taxes and
incentive accruals, none of which are greater than 5% of the current liability balance.
(d) Additional information
Advertising expense, which includes media, agency and promotional expenses totalling $790.8 million (February 28, 2009 —
$718.9 million; March 1, 2008 — $336.0 million) is included in selling, marketing and administration expense.
Selling, marketing and administration expense for the fiscal year includes $58.4 million with respect to foreign exchange
losses (February 28, 2009 — loss of $6.1 million; March 1, 2008 — loss of $5.3 million). For the year ended February 27, 2010,
the Company recorded a $54.3 million charge primarily relating to the reversal of foreign exchange gains previously
recorded in fiscal 2009 on the revaluation of Canadian dollar denominated tax liability balances. Throughout fiscal 2009,
foreign exchange gains were offset by foreign exchange losses incurred as a part of the Company’s risk management
foreign currency hedging program. With the enactment of changes to the functional currency tax legislation by the
Government of Canada in the first quarter of fiscal 2010, the Company changed the basis for calculating its income tax
provision for its Canadian operations from Canadian dollars, to the U.S. dollar, its reporting currency with an effective date
being the beginning of fiscal 2009. The gains realized on the revaluation of these tax liabilities previously denominated in
Canadian dollars throughout fiscal 2009 were reversed upon enactment of the changes to the rules in the first quarter of
fiscal 2010.
RESEARCH IN MOTION LIMITED
Notes to the Consolidated Financial Statements continued
In thousands of United States dollars, except share and per share data, and except as otherwise indicated
NOTE 16
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