Blackberry 2013 Annual Report Download - page 210

Research In Motion Limited
Management’s Discussion and Analysis of Financial Condition and Results of Operations
research and development expenditures, research and development expenses decreased by $6 million. This decrease was primarily
attributable to a reduction in materials costs due to fewer new product introductions as well as a net reduction in headcount related
costs driven by the CORE program compared to the fourth quarter of fiscal 2012. Research and development related headcount
decreased by approximately 9%, compared to the fourth quarter of fiscal 2012.
Selling, Marketing and Administration Expenses
Selling, marketing and administration expenses increased by $36 million to $523 million in the fourth quarter of fiscal 2013 compared
to $487 million for the third quarter of fiscal 2013. Excluding the impact of charges related to the CORE program incurred during the
fourth quarter of fiscal 2013, of which $30 million was attributable to selling, marketing and administration expenditures, and the
charges incurred as part of the CORE program during the third quarter of fiscal 2013, of which $19 million was attributable to selling,
marketing and administration, selling marketing and administration expenses increased by $25 million. The $25 million increase was
primarily attributable to increased advertising and promotion spend related to the launch of BlackBerry 10 devices, partially offset by
reductions in bonus levels and headcount compared to the third quarter of fiscal 2013. Selling, marketing and administration related
headcount decreased by approximately 11%, compared to the third quarter of fiscal 2013.
Selling, marketing and administration expenses decreased by $123 million in the fourth quarter of fiscal 2013 compared to $646
million in the fourth quarter of fiscal 2012. Excluding the impact of charges incurred as part of the CORE program during the fourth
quarter of fiscal 2013, of which $30 million was attributable to selling, marketing and administration expenditures and the Q4
Goodwill Impairment Charge incurred in the fourth quarter of fiscal 2012, selling, marketing and administration expenses decreased
by $153 million. This decrease was primarily attributable to cost savings related to vendor contracts and a net reduction in headcount
related costs driven by the CORE program compared to the fourth quarter fiscal 2012. Headcount related to selling, marketing and
administration functions decreased by approximately 33%, as compared to the fourth quarter of fiscal 2012.
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