Blackberry 2004 Annual Report Download - page 26

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24
Research In Motion Limited • Incorporated Under the Laws of Ontario (In thousands of United States dollars, except per share data, and except as otherwise indicated)
A comparative summary of cash and cash equivalents, short-term investments and investments is set out below.
As At February 28, 2004 March 1, 2003 Change 2004/2003
Cash and cash equivalents $ 1,156,419 $ 340,681 $ 815,738
Short-term investments –––
Investments 333,886 190,030 143,856
Cash, cash equivalents, short-term investments
and investments $ 1,490,305 $ 530,711 $ 959,594
The majority of the Company’s cash and cash equivalents and investments are denominated in U.S. dollars as
at February 28, 2004.
NTP Litigation Funding
See also “Results of Operations – Litigation” and
note 16 to the Consolidated Financial Statements.
Commencing in the first quarter of fiscal 2004 and
on a quarterly basis thereafter, the Company is
required to deposit the current period’s enhanced
compensatory damages amount (the “quarterly
deposit”) into a bank escrow account, 30 days
subsequent to the end of the quarter. The quarterly
deposit is currently calculated as 8.55% of
infringing revenues, plus postjudgment interest.
These quarterly deposits will be set aside in escrow
until the appeals process is complete. The quarterly
deposit fundings for the first three quarters, and the
$12.9 million obligation for the fourth quarter of
fiscal 2004, are reflected as Restricted cash on the
Company’s consolidated balance sheet as at
February 28, 2004.
The Company has obtained a $70 million Letter of
Credit Facility (the “Facility”) for operating
requirements. Approximately $48 million of the
Facility has been utilized in order to satisfy a
portion the Company’s liability and funding
obligation with respect to the NTP matter, as
described in note 16 to the Consolidated Financial
Statements. During the third quarter of fiscal 2004
and pending the completion of the appeals process,
the Company posted, with the approval of the Court,
a $48 million Standby Letter of Credit (“LC”) to
guarantee the monetary damages of the Court’s final
order. The LC amount of $48 million excludes the
fiscal 2004 quarterly deposit obligations into the
escrow bank account. The Company has pledged
specific investments as security for the Facility.
The Company’s fiscal 2004 quarterly deposit
obligations total $36.3 million and are classified as
Restricted cash on the Company’s consolidated
balance sheets as at February 28, 2004.