Blackberry 2014 Annual Report Download - page 127

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
38
contracts hedging anticipated foreign currency transactions on which it did not apply hedge accounting. Any realized and
unrealized gains and losses on these contracts are recognized in income each period. The maturity dates of these
instruments range from March 2014 to July 2014. As at March 1, 2014, there were unrealized losses (net of premium
paid) of $6 million recorded in respect of these instruments (March 2, 2013 - no unrealized gains or losses). Unrealized
gains associated with these contracts were recorded in other current assets and selling, marketing and administration
expenses. Unrealized losses were recorded in accrued liabilities and selling, marketing and administration expenses.
The following table shows the fair values of derivative instruments hedging anticipated foreign currency transactions on
which the Company did not or could not apply hedge accounting on the consolidated balance sheets:
As at
March 1, 2014 March 2, 2013
Balance Sheet Classification Fair Value Balance Sheet Classification Fair Value
Currency forward contracts - asset Other current assets $ — Other current assets $ —
Currency option contracts - asset Other current assets — Other current assets —
Currency forward contracts - liability Accrued liabilities (4) Accrued liabilities —
Currency option contracts - liability Accrued liabilities — Accrued liabilities —
As part of its currency risk management strategy, the Company may maintain net monetary asset and/or liability balances
in foreign currencies. The Company enters into foreign exchange forward contracts to hedge certain monetary assets and
liabilities that are exposed to foreign currency risk. The principal currencies hedged include the Canadian dollar, Euro,
and British Pound. These contracts are not subject to hedge accounting, and any realized and unrealized gains or losses are
recognized in income each period, offsetting the change in the U.S. dollar value of the asset or liability. The maturity dates
of these instruments range from March 2014 to May 2014. As at March 1, 2014, net unrealized losses (net of premium
paid) of $10 million were recorded in respect of these instruments (March 2, 2013 - net unrealized gains of $29 million).
Unrealized gains associated with these contracts were recorded in other current assets and selling, marketing and
administration expenses. Unrealized losses were recorded in accrued liabilities and selling, marketing and administration
expenses.
The following table shows the fair values of derivative instruments that are not subject to hedge accounting on the
consolidated balance sheets:
As at
March 1, 2014 March 2, 2013
Balance Sheet
Classification Fair Value Balance Sheet Classification Fair Value
Currency forward contracts - asset Other current assets $ 5 Other current assets $ 44
Currency option contracts - asset Other current assets 1 Other current assets —
Currency forward contracts - liability Accrued liabilities (15) Accrued liabilities (14)
Currency option contracts - liability Accrued liabilities (1) Accrued liabilities (1)
The following table shows the impact of derivative instruments that are not subject to hedge accounting on the
consolidated statement of operations for the year ended March 1, 2014:
Location of Gain (Loss) Recognized in Income on Derivative Instruments
Amount of Gain (Loss) in
Income on Derivative
Instruments
Currency forward contracts Selling, marketing and administration $ 16
Currency option contracts Selling, marketing and administration 11