Blackberry 2011 Annual Report Download - page 92

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The following table shows the fair values of derivative instruments that are not subject to hedge accounting in the consolidated
balance sheets:
Balance Sheet
Classification Fair Value
Balance Sheet
Classification Fair Value
February 26, 2011 February 27, 2010
As at
Currency forward contracts — asset Other current assets $6 Other current assets $31
Currency forward contracts — liability Accrued liabilities $52 Accrued liabilities $ 2
The following table shows the impact of derivative instruments that are not subject to hedge accounting on the consolidated
statement of operations for the year ended February 26, 2011:
Location of Gain (Loss) Recognized in
Income on Derivative Instruments
Amount 0of Gain (Loss) in Income
on Derivative Instruments
Currency Forward Contracts Selling, marketing and administration $(40)
Currency Option Contracts Selling, marketing and administration $ 1
The following table shows the impact of derivative instruments that are not subject to hedge accounting on the consolidated
statement of operations for the year ended February 27, 2010:
Location of Loss Recognized in
Income on Derivative Instruments
Amount of Loss in Income
on Derivative Instruments
Currency Forward Contracts Selling, marketing and administration $(55)
Credit
The Company is exposed to credit risk on derivative financial instruments arising from the potential for counterparties to default on
their contractual obligations. The Company mitigates this risk by limiting counterparties to highly rated financial institutions and by
continuously monitoring their creditworthiness. The Company’s exposure to credit loss and market risk will vary over time as a function
of currency exchange rates. The Company measures its counterparty credit exposure as a percentage of the total fair value of the
applicable derivative instruments. Where the net fair value of derivative instruments with any counterparty is negative, the Company
deems the credit exposure to that counterparty to be nil. As at February 26, 2011, the maximum credit exposure to a single
counterparty, measured as a percentage of the total fair value of derivative instruments with net unrealized gains was 59% (February 27,
2010 — 24%; February 28, 2009 — 60%).
The Company is exposed to market and credit risk on its investment portfolio. The Company reduces this risk by investing in liquid,
investment grade securities and by limiting exposure to any one entity or group of related entities. As at February 26, 2011, no single
issuer represented more than 19% of the total cash, cash equivalents and investments (February 27, 2010, no single issuer
represented more than 8% of the total cash, cash equivalents and investments).
Interest Rate
Cash and cash equivalents and investments are invested in certain instruments of varying maturities. Consequently, the Company is
exposed to interest rate risk as a result of holding investments of varying maturities. The fair value of investments, as well as the
investment income derived from the investment portfolio, will fluctuate with changes in prevailing interest rates. The Company does not
currently utilize interest rate derivative instruments in its investment portfolio.
RESEARCH IN MOTION ANNUAL REPORT 2011 79
RESEARCH IN MOTION LIMITED
Notes to the Consolidated Financial Statements
continued
In millions of United States dollars, except share and per share data, and except as otherwise indicated