Blackberry 2012 Annual Report Download - page 163

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
The components of unrealized gains (losses) on derivative instruments are as follows:
Values of financial instruments outstanding were as follows:
Foreign Exchange
The Company uses derivative instruments to manage exposures to foreign exchange risk resulting from transactions in
currencies other than its functional currency, the U.S. dollar. The Company’s risk management objective in holding derivative
instruments is to reduce the volatility of current and future income as a result of changes in foreign currency. To limit its
exposure to adverse movements in foreign currency exchange rates, the Company enters into foreign currency forward and
option contracts. The Company does not use derivative instruments for speculative purposes.
The majority of the Company’s revenues in fiscal 2012 are transacted in U.S. dollars. However, portions of the revenues are
denominated in Canadian dollars, Euros, and British Pounds. Purchases of raw materials are primarily transacted in U.S. dollars.
Other expenses, consisting of the majority of salaries, certain operating costs and manufacturing overhead are incurred primarily
in Canadian dollars. The Company enters into forward and
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As at
March 3,
2012
February 26,
2011
Unrealized gains included in other current assets
$72 $64
Unrealized losses included in accrued liabilities
(35) (130)
Net fair value of unrealized gains (losses) on derivative
instruments
$37 $(66)
15. DERIVATIVE FINANCIAL INSTRUMENTS
As at March 3, 2012
Notional
Amount
Estimated
Fair Valu
e
Assets (Liabilities)
Currenc
y
forward contracts - asset $ 1,608 $ 55
Currenc
y
o
p
tion contracts - asset $608 $17
Currenc
y
forward contracts - liabilit
y
$ 2,155 $ (34)
Currenc
y
o
p
tion contracts - liabilit
y
$48
0
$(1)
As at Februar
y
26, 2011
Notional
Amount
Estimated
Fair Value
Assets (Liabilities)
Currenc
y
forward contracts - asset $ 1,622 $ 63
Currenc
y
o
p
tion contracts - asset $156 $ 1
Currenc
y
forward contracts - liabilit
y
$ 4,848 $ (129)
Currenc
y
o
p
tion contracts - liabilit
y
$18
0
$(1)