Blackberry 2008 Annual Report Download - page 65

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63
will likely result in extended maturities and/or a pro-rata
distribution of proceeds from the income and principal
payments on the assets underlying the securities. Given the
uncertainty of the restructuring at this time, the Company
cannot determine the potential impact that a restructuring
will have on the value of these securities and has classified
these securities as long-term investments. The Company may
recognize additional impairment charges on these securities
if the restructuring is unsuccessful or there is an other-than-
temporary deterioration in the value of the underlying assets.
The remaining $15.0 million face amount of SIV holdings
were sold by the Company subsequent to March 1, 2008
for a realized loss of $1.8 million. This loss is included in
the other-than-temporary impairment charge as described
above and these securities have been classified as short-term
investments as of March 1, 2008.
changes in market conditions and has recognized through net
income an other-than-temporary impairment charge of $5.6
million on these securities for the year ended March 1, 2008.
In determining the value for these securities, the Company
has considered available evidence including changes in
general market conditions, specific industry and individual
company data, the length of time and the extent to which
the fair value has been less than cost, the financial condition,
the near-term prospects of the individual investment and the
Company’s intent and ability to hold the debt securities.
One of the programs with a $25.0 million face amount
included in the total $40.0 million of SIV holdings has been
placed with an enforcement manager to be restructured or
sold at the election of each senior note holder. The Company
has elected to participate in the restructuring of the securities.
The Company believes that the anticipated restructuring
5. INVENTORY
Inventory is comprised as follows:
March 1,
2008 March 3,
2007
Raw materials $ 167,185 $ 121,439
Work in process 239,610 141,938
Finished goods 9,233 8,413
Provision for excess and obsolete inventory (19,761) (15,883)
$ 396,267 $ 255,907
6. CAPITAL ASSETS
Capital assets are comprised of the following:
March 1, 2008
Cost Accumulated
amortization Net book
value
Land $ 54,085 $ - $ 54,085
Buildings, leaseholds and other 327,645 46,708 280,937
BlackBerry operations and other information technology 436,681 225,061 211,620
Manufacturing equipment, research and development equipment,
and tooling 167,618 95,448 72,170
Furniture and fixtures 150,911 63,768 87,143
$ 1,136,940 $ 430,985 $ 705,955