Blackberry 2012 Annual Report Download - page 170

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
Advertising expense, which includes media, agency and promotional expenses totalling $864 million (February 26, 2011 - $1.1
billion; February 27, 2010 - $791 million) is included in selling, marketing and administration expense for the fiscal year ended
March 3, 2012.
Selling, marketing and administration expense for the fiscal year ended March 3, 2012 included $40 million with respect to
foreign exchange losses (February 26, 2011 – loss of $5 million; February 27, 2010 – loss of $58 million). For the year ended
February 27, 2010, the Company recorded a $54 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 mitigation 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.
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17. CASH FLOW INFORMATION
(a) Cash flows resultin
g
from net chan
g
es in workin
g
ca
p
ital items are as follows:
For the year ended
March 3,
2012
February 26,
2011
February 27,
2010
Accounts receivable
$898 $(1,352) $(481)
Other receivables
(168) (117) (45)
Inventories (409) 42 48
Income taxes receivable
(135)
—
—
Other current assets (143) 54 (40)
Accounts
p
a
y
able (90) 216 167
Accrued liabilities (135) 539 442
Income taxes
p
a
y
able (179) 82 (266)
Deferred revenue 151 40 14
$ (210) $ (496) $ (161)
(b) Certain statement of cash flow information related to interest and income taxes
p
aid is summarized as follows:
For the year ended
March 3,
2012
February 26,
2011
February 27,
2010
Interest paid during the year
$
—
$
—
$
—
Income taxes
p
aid durin
g
the
y
ear $684 $ 1,053 $ 1,082
(c) Additional information