Blackberry 2013 Annual Report Download - page 156

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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
The Company estimates its warranty costs at the time of revenue recognition based on historical experience and expectations of
future return rates and unit warranty repair costs. The warranty accrual balance is reviewed quarterly to establish that it
materially reflects the remaining obligation based on the anticipated future expenditures over the balance of the obligation
period. Adjustments are made when the actual warranty claim experience differs from estimates. The warranty accrual is
included in accrued liabilities on the Company’s consolidated balance sheets.
The change in the Company’s warranty expense and actual warranty experience from February 27, 2010 to March 2, 2013 as
well as the accrued warranty obligations are set forth in the following table:
40
12. PRODUCT WARRANTY
Accrued warrant
y
obli
g
ations as at Februar
y
27, 2010 $252
Actual warrant
y
ex
p
erience durin
g
fiscal 2011 (657)
Fiscal 2011 warrant
y
p
rovision
806
Ad
j
ustments for chan
g
es in estimate
58
Accrued warrant
y
obli
g
ations as at Februar
y
26, 2011 459
Actual warrant
y
ex
p
erience durin
g
fiscal 2012 (685)
Fiscal 2012 warrant
y
p
rovision
622
Ad
j
ustments for chan
g
es in estimate
12
Accrued warrant
y
obli
g
ations as at March 3, 2012 408
Actual warrant
y
ex
p
erience durin
g
fiscal 2013 (474)
Fiscal 2013 warrant
y
p
rovision
392
Ad
j
ustments for chan
g
es in estimate
(8)
Accrued warrant
y
obli
g
ations as at March 2, 2013 $318