Blackberry 2012 Annual Report Download - page 201

Research In Motion Limited
Management’s Discussion and Analysis of Financial Condition and Results of Operations
Operating Expenses
The table below presents a comparison of research and development, selling, marketing and administration, amortization and
litigation expenses for fiscal 2011 compared to fiscal 2010.
Total operating expenses for fiscal 2011 as a percentage of revenue decreased by 1.4% to 21.1% of revenue compared to fiscal 2010.
31
For the Fiscal Year Ended
(in millions)
February 26, 2011 February 27, 2010 Change 2011/2010
% of
Revenue
% of
Revenue
% of
Change
Revenue
$19,907 $14,953 $4,954 33.1%
Operating expenses
Research and develo
p
ment $1,351 6.8% $965 6.5% $386 40.0%
Sellin
g
, marketin
g
and administration 2,400 12.1% 1,907 12.8% 493 25.9%
Amortization 438 2.2% 310 2.1% 128 41.3%
Liti
g
ation
—
—
164 1.1% (164) (100.0%)
Total $4,189 21.1% $3,346 22.5% $843 25.2%
(1) Selling, marketing and administration in fiscal 2010 included unusual charges of $96 million recognized in the first quarter of
fiscal 2010. The unusual charges related to a charge for the payment on account of certain employee tax liabilities related to
certain previously-exercised stock options with measurement date issues that were exercised during certain time periods and the
forei
g
n exchan
g
e im
p
act of the enactment of functional currenc
y
tax le
g
islation in Canada.
(2) In fiscal 2010, the Company settled the Visto Litigation. The key terms of the settlement involved the Company receiving a
perpetual and fully-paid license on all Visto patents, a transfer of certain Visto intellectual property, a one-time payment by the
Company of $268 million and the parties executing full and final releases in respect of the Visto Litigation. Of the total payment
by the Company, $164 million was expensed as a litigation charge in the second quarter of fiscal 2010. The remainder of the
p
a
y
ment was recorded as intan
g
ible assets.
(1)
(2)