Blackberry 2013 Annual Report Download - page 138

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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
Intangible assets, net
Intangible assets were comprised of the following:
During fiscal 2013, the additions to intangible assets primarily consisted of payments relating to amended or renewed licensing
agreements, 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 2, 2013, amortization expense related to intangible assets was $1.2 billion (March 3, 2012 - $863
million; February 26, 2011 - $430 million). Total additions to intangible assets in fiscal 2013 were $1.2 billion (2012 - $2.4
billion).
Based on the carrying value of the identified intangible assets as at March 2, 2013 and assuming no subsequent impairment of
the underlying assets, the annual amortization expense for each of the succeeding years is expected to be as follows: 2014 - $1.2
billion; 2015 - $656 million; 2016 - $363 million; 2017 - $320 million; and 2018 - $272 million.
The weighted-average remaining useful life of the acquired technology is 3.2 years (2012 - 2.9 years).
22
As at March 2, 2013
Cost
Accumulate
d
Amortizatio
n
Net Book
Value
Ac
q
uired technolo
gy
$455 $262 $193
Intellectual
p
ro
p
ert
y
4,382 1,127 3,255
$4,837 $1,389 $3,448
As at March 3, 2012
Cost
Accumulate
d
Amortizatio
n
Net Book
Value
Ac
q
uired technolo
gy
$397 $182 $215
Intellectual
p
ro
p
ert
y
4,217 1,146 3,071
$4,614 $1,328 $3,286