Blackberry 2015 Annual Report Download - page 91

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
16
The following table shows the impact of derivative instruments designated as cash flow hedges on the consolidated
statement of operations for the year ended March 1, 2014:
Amount of Gain (Loss)
Recognized in Other
Comprehensive Income on
Derivative Instruments
(Effective Portion)
Location of Gain (Loss) Reclassified
from AOCI into Income
(Effective Portion)
Amount of Gain (Loss)
Reclassified from
AOCI into Income
(Effective Portion)
Currency option contracts $ — Revenue $ (7)
Currency forward contracts (1) Cost of sales (2)
Currency forward contracts (2) Selling, marketing and
administration (4)
Currency forward contracts (4) Research and development (6)
Currency option contracts (1) Research and development —
Amount of Gain (Loss)
Recognized in Income on
Derivative Instruments
(Ineffective Portion)
Location of Gain (Loss) Reclassified
from AOCI into Income
(Ineffective Portion)
Amount of Gain (Loss)
Reclassified from
AOCI into Income
(Ineffective Portion)
Currency forward contracts $ — Selling, marketing and
administration $ (4)
Amount of Gain (Loss)
Recognized in Income on
Derivative Instruments
(Unqualified Portion)
Location of Gain (Loss) Reclassified
from AOCI into Income
(Unqualified
Portion)
Amount of Gain (Loss)
Reclassified from
AOCI into Income
(Unqualified Portion)
Currency forward contracts $ — Selling, marketing and
administration $ (9)
The Company has also entered into other forward and option contracts hedging anticipated foreign currency transactions
which it did not designate as cash flow hedges. 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, 2015 to August, 2015. As
at February 28, 2015, there were unrealized gains (net of premium paid) of $25 million recorded in respect of these
instruments (March 1, 2014 - unrealized losses of $6 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.
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, 2015 to August, 2015. As at February 28, 2015, net unrealized gains (net of
premium paid) of $57 million were recorded in respect of these instruments (March 1, 2014 - net unrealized losses of $10
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 impact of derivative instruments that are not subject to hedge accounting on the
consolidated statement of operations for the year ended February 28, 2015 and March 1, 2014:
Amount of Gain (Loss) in
Income on Derivative Instruments
Location of Gain (Loss) Recognized in
Income on Derivative Instruments February 28, 2015 March 1, 2014
Currency forward contracts Selling, marketing and administration $ 156 $ 16
Currency option contracts Selling, marketing and administration 11 11