Blackberry 2013 Annual Report Download - page 216

Research In Motion Limited
Management’s Discussion and Analysis of Financial Condition and Results of Operations
The decrease in current liabilities of $59 million at the end of fiscal 2013 from the end of fiscal 2012 was primarily due to a decrease
in accrued liabilities, which was partially offset by increases in accounts payable and deferred revenue. As at March 2, 2013, accrued
liabilities were $1.8 billion, which reflects a decrease of $540 million compared to March 3, 2012 due to in decreases in rebate,
vendor inventory and warranty accruals related to lower unit shipment volumes. The increase in accounts payable of $320 million was
primarily attributable to the timing of purchases during fiscal 2013 compared to fiscal 2012, with a significant portion of the increase
due to the purchase of BlackBerry Z10 components in support of the global launch of the new smartphones. Deferred revenue
increased by $279 million as a result of certain customers moving to the sell-through method of revenue recognition in fiscal 2013.
I
nvesting Activities
During the fiscal year ended March 2, 2013, cash flows used in investing activities were $2.2 billion and included intangible asset
additions of $1.0 billion, cash flows used in transactions involving the proceeds on sale or maturity of short-term and long-term
investments, net of the costs of acquisitions in the amount of $762 million, acquisitions of property, plant and equipment of $413
million and business acquisitions of $60 million. For the same period of the prior fiscal year, cash flows used in investing activities
were $3.0 billion and included intangible asset additions of $2.2 billion, property, plant and equipment additions of $902 million and
business acquisitions of $226 million, offset by cash flows provided by transactions involving the proceeds on sale or maturity of
short-term investments and long-term investments, net of the costs of acquisitions, in the amount of $321 million.
During the fiscal year ended March 2, 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 business acquisitions. The decrease in
property, plant and equipment spending for fiscal 2013 was primarily due to the cost saving initiatives of the CORE program,
reflecting the Company’s targeted investment approach in research and development and manufacturing, as well as its continued
investment in network infrastructure, which remains a strategic priority for the Company. In the first quarter of fiscal 2014, the
Company expects capital expenditures to be approximately $100 million.
Financing Activities
Cash flows used in financing activities were $36 million for fiscal 2013 and were in connection with the Company’s stock
compensation program. Cash flows used in financing activities were $149 million for fiscal 2012 and were primarily attributable to
the purchases of common shares on the open market by a trustee selected by the Company in connection with its Restricted Share
Unit Plan, which are classified on the balance sheet for accounting purposes as treasury stock, in the amount of $156 million.
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• Stringent and evolving currency exchange restrictions and controls which could result in extended delays in the collection
of accounts receivables.