Blackberry 2014 Annual Report Download - page 124

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BlackBerry Limited
Notes to the Consolidated Financial Statements
In millions of United States dollars, except share and per share data, and except as otherwise indicated
35
14. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
The components of accumulated other comprehensive income (loss) are as follows:
As at
March 1, 2014 March 2, 2013 March 3, 2012
Accumulated net unrealized gains on available-for-sale investments $ 1 $ 2 $ 2
Accumulated net unrealized gains (losses) on derivative instruments
designated as cash flow hedges (9)(6) 38
Accumulated other comprehensive income (loss) $(8)$ (4) $ 40
The effects on net income of amounts reclassified from AOCI into income by component for the year ended March 1,
2014 were as follows:
Location of loss reclassified from AOCI into income Gains and Losses on
Cash Flow Hedges
Gains and Losses on
Available-for-Sale
Securities Total
Revenue $(7) $ — $ (7)
Selling, marketing and administration (17) — (17)
Research and development (6) — (6)
Cost of sales (2) — (2)
Recovery of income taxes 6 — 6
Total amount reclassified into income, net of tax $(26) $ — $ (26)
15. DERIVATIVE FINANCIAL INSTRUMENTS
The notional amounts and fair values of financial instruments outstanding were as follows:
As at March 1, 2014
Assets (Liabilities) Notional
Amount Estimated
Fair Value
Currency forward contracts - asset $ 585 $ 5
Currency option contracts - asset 186 2
Currency forward contracts - liability 1,304 (26)
Currency option contracts - liability 72 (2)
As at March 2, 2013
Assets (Liabilities) Notional
Amount Estimated
Fair Value
Currency forward contracts - asset $ 2,356 $ 57
Currency option contracts - asset 309 2
Currency forward contracts - liability 1,332 (24)
Currency option contracts - liability 426 (11)
Foreign Exchange
The Company uses derivative instruments to manage exposures to foreign exchange risk resulting from transactions in
currencies other than its functional currency, the U.S. dollar. The Company’s currency risk management objective in
holding derivative instruments is to reduce the volatility of current and future income as a result of changes in foreign
currency exchange rates. To limit its exposure to adverse movements in foreign currency exchange rates, the Company
enters into foreign currency forward and option contracts.