Blackberry 2013 Annual Report Download - page 145

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 Company determined that it is more likely than not that it can realize its deferred income tax assets. Accordingly, no
valuation allowance is required on its deferred income tax assets as at March 2, 2013 (March 3, 2012 - nil). The Company will
continue to evaluate and examine the valuation allowance on a regular basis, and when required, the valuation allowance may be
adjusted.
The Company has not provided for Canadian deferred income taxes or foreign withholding taxes that would apply on the
distribution of the income of its non-Canadian subsidiaries, as this income is intended to be reinvested indefinitely. As at
March 2, 2013, the cumulative amount of earnings upon which income taxes have not been provided is approximately $1.3
billion. The amount of unrecognized deferred tax liability related to these earnings is estimated to be approximately $60 million.
The Company’s total unrecognized income tax benefits as at March 2, 2013 and March 3, 2012 were $29 million and $146
million, respectively. The decrease in unrecognized income tax benefits primarily relates to the effective settlement of uncertain
income tax positions in the third quarter of fiscal 2013 that resulted from the restructuring of the Company’s international
operations. A reconciliation of the beginning and ending amount of unrecognized income tax benefits that, if recognized, would
affect the Company’s effective income tax rate is as follows:
As at March 2, 2013, all of the unrecognized income tax benefits of $29 million have been netted against current income taxes
payable and other non-current income taxes payable on the Company’s consolidated balance sheet.
A summary of open tax years by major jurisdiction is presented below:
The Company is subject to ongoing examination by tax authorities in the jurisdictions in which it operates. The Company
regularly assesses the status of these examinations and the potential for adverse outcomes to determine the adequacy of the
provision for income taxes as well as the provisions for indirect and other taxes and related penalties and interest. The Company
believes it is reasonably possible that approximately $17 million of its gross unrecognized income tax benefits will be realized in
the next twelve months. The Company has other non-
29
March 2,
2013
March 3,
2012
February 26,
2011
Unrecognized income tax benefits, opening balance $146 $164 $161
Increase for income tax
p
ositions of
p
rior
y
ears
9 15 8
Increase for income tax
p
ositions of current
y
ear
2
—
—
Settlement of tax
p
ositions
(152) (8) (2)
Ex
p
iration of statute of limitations
—
(24)
—
Other
24 (1) (3)
Unreco
g
nized income tax benefits, endin
g
balance $29 $146 $164
Jurisdiction
Canada
Fiscal 2009 - 2013
United States
Fiscal 2012 - 2013
United Kin
g
dom
Fiscal 2010 - 2013
Includes federal as well as
p
rovincial
j
urisdictions.
Pertains to federal tax
y
ears. Certain state
j
urisdictions remain o
p
en from fiscal 2009 throu
g
h fiscal 2013.
(1)
(2)
(1)
(2)