Blackberry 2012 Annual Report Download - page 141

Research In Motion Limited
Notes to the Consolidated Financial Statements
In millions of United States dollars, except share and per share data, and except as otherwise indicated
As at March 3, 2012, the carrying amount of assets under construction was $392 million (February 26, 2011 - $296 million). Of
this amount, $241 million (February 26, 2011 - $164 million) was included in buildings, leaseholds and other; $132 million
(February 26, 2011 - $131 million) was included in BlackBerry operations and other information technology; $15 million
(February 26, 2011 - $1 million) was included in manufacturing equipment, research and development equipment, and tooling;
and $4 million (February 26, 2011 – nil) was included in furniture and fixtures.
For the year ended March 3, 2012, amortization expense related to property, plant and equipment was $660 million (February
26, 2011 - $497 million; February 27, 2010 - $345 million).
Intangible assets, net
Intangible assets were comprised of the following:
During fiscal 2012, the additions to intangible assets primarily consisted of payments relating to amended or renewed licensing
agreements, patent license agreements including those relating to 3G and 4G technologies, a patent license agreement with IV
International, as well as agreements with third parties for the use of intellectual property, software, messaging services and other
BlackBerry related features, as well as intangible assets associated with the business acquisitions discussed in note 7.
During fiscal 2012, a consortium of certain technology companies, of which the Company is a part, emerged as the winning
bidder for all of Nortel’s remaining patents and patent applications for a cash purchase price of $4.5 billion. The Company’s
portion of the purchase consideration is approximately $775 million. The purchase includes more than 6,000 patents and patent
applications spanning wireless, wireless 4G, data networking, voice, internet and other patents. The majority of the Company’s
portion of the purchase consideration was recorded as intangible assets as at March 3, 2012.
For the year ended March 3, 2012, amortization expense related to intangible assets was $863 million (February 26, 2011 - $430
million; February 27, 2010 - $271 million). Total additions to intangible assets in fiscal 2012 were $2.4 billion (2011 - $906
million).
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As at March 3, 2012
Cost
Accumulated
amortizatio
n
Net book
value
Acquired technology
$397 $182 $215
Intellectual Pro
p
ert
y
4,217 1,146 3,071
$4,614 $1,328 $3,286
As at February 26, 2011
Cost
Accumulated
amortization
Net book
value
Acquired technology
$321 $125 $196
Intellectual Pro
p
ert
y
2,346 744 1,602
$2,667 $869 $1,798