Blackberry 2016 Annual Report Download - page 97

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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
29
The Company’s total unrecognized income tax benefits as at February 29, 2016 and February 28, 2015 were $37 million
and $11 million, respectively. A reconciliation of the beginning and ending amount of unrecognized income tax benefits
that, if recognized, would affect the Company’s effective income tax rate is as follows:
For the Years Ended
February 29, 2016 February 28, 2015 March 1, 2014
Unrecognized income tax benefits, opening balance $ 11 $ 8 $ 29
Increase for income tax positions of prior years — 3 5
Increase for income tax positions of current year 34 — —
Settlement of tax positions (8) — (23)
Other — — (3)
Unrecognized income tax benefits, ending balance $ 37 $ 11 $ 8
The increase in unrecognized income tax benefits for the current year of $34 million relates to prior year tax positions of
companies acquired in the current fiscal year. As at February 29, 2016, all of the unrecognized income tax benefits of $37
million have been netted against current income taxes and deferred income taxes on the Company’s consolidated balance
sheets.
A summary of open tax years by major jurisdiction is presented below:
Jurisdiction
Canada(1) Fiscal 2010 - 2016
United States(2) Fiscal 2013 - 2016
United Kingdom Fiscal 2014 - 2016
______________________________
(1) Includes federal as well as provincial jurisdictions, as applicable.
(2) Pertains to federal tax years. Certain state jurisdictions remain open from fiscal 2012 through fiscal 2016.
The Company is subject to ongoing examination by tax authorities in the jurisdictions in which it operates. The Company
regularly assesses the status of these examinations and the potential for adverse outcomes to determine the adequacy of
the provision for income taxes, as well as the provisions for indirect and other taxes and related penalties and interest. The
Company believes it is reasonably possible that approximately $3 million of its gross unrecognized income tax benefit
will be realized in the next twelve months. While the final resolution of these audits is uncertain, the Company believes
the ultimate resolution of these audits will not have a material adverse effect on its consolidated financial position,
liquidity or results of operations.
The Company recognizes interest and penalties related to unrecognized income tax benefits as interest expense that is
netted and reported within investment income (loss). The amount of interest accrued as at February 29, 2016 was
approximately $1 million (February 28, 2015 - approximately $1 million). The amount of penalties accrued as at
February 29, 2016 was nominal (February 28, 2015 - nominal).