Blackberry 2011 Annual Report Download - page 72

The carrying amounts of the Company’s cash and cash equivalents, accounts receivables, other receivables, accounts payable and
accrued liabilities approximate fair value due to their short maturities.
In determining the fair value of investments held, the Company primarily relies on an independent third party valuator for the fair
valuation of securities. Pricing inputs used by the independent third party valuator are generally received from two primary vendors.
The pricing inputs are reviewed for completeness and accuracy, within a set tolerance level, on a daily basis by the third party valuator.
The Company also reviews and understands the inputs used in the valuation process and assesses the pricing of the securities for
reasonableness.
The fair values of money market funds were derived from quoted prices in active markets for identical assets or liabilities.
For bankers’ acceptances, term deposits/certificates and commercial paper, the independent third party utilizes amortized cost as
the short-term nature of the securities approximates fair value. For corporate notes/bonds (other than those classified as Level 3),
U.S. treasury bills/notes, non-U.S. treasury bills/notes, U.S. government sponsored enterprise notes, non-U.S. government sponsored
enterprise notes and asset backed securities, the independent third party provides fair values determined from quoted prices that it
obtains from vendors. The Company then corroborates the fair values received from the independent third party against the results of
its internal valuation in order to corroborate the pricing provided by the independent third party.
The Company corroborates the fair values provided by the independent third party for bankers’ acceptances by comparing those
provided against fair values determined by the Company utilizing quoted prices from vendors for identical securities, or the market
prices of similar securities adjusted for observable inputs such as differences in maturity dates, interest rates, and credit ratings. The
bankers’ acceptances held by the Company are all issued by major banking organizations and all have investment grade ratings.
The Company corroborates the fair values provided by the independent third party for term deposits/certificates by comparing those
provided against fair values determined by the Company utilizing quoted prices from vendors for identical securities, or the market
prices of similar securities adjusted for observable inputs such as differences in maturity dates, interest rates and credit ratings. The
term deposits/certificates held by the Company are all issued by major banking organizations and all have investment grade ratings.
The Company corroborates the fair values provided by the independent third party for commercial paper by comparing those
provided against fair values determined by the Company utilizing quoted prices from vendors for identical securities, or the market
prices of similar securities adjusted for observable inputs such as differences in maturity dates, interest rates, dealer placed rates and
credit ratings. The commercial paper held by the Company are all issued by financing or capital organizations and all have investment
grade ratings.
The Company corroborates the fair values provided by the independent third party for corporate notes/bonds (other than those
classified as Level 3) by comparing those provided against fair values determined by the Company utilizing quoted prices from vendors
for identical securities, or the market prices of similar securities adjusted for observable inputs such as differences in maturity dates,
interest rates, yield curves, swap rates, credit ratings, industry comparable trades and spread history. The corporate notes/bonds held
by the Company are all issued by major corporate organizations and all have investment grade ratings.
The Company corroborates the fair values provided by the independent third party for U.S. treasury bills/notes by comparing those
provided against fair values determined by the Company utilizing quoted prices from vendors for identical securities as provided by
U.S. government bond dealers. All U.S. treasury bills/notes held by the Company are issued by the United States Department of the
Treasury and all have investment grade ratings.
The Company corroborates the fair values provided by the independent third party for non-U.S. treasury bills/notes by comparing
those provided against fair values determined by the Company utilizing quoted prices from vendors for identical securities, or the
market prices of similar securities adjusted for observable inputs such as differences in maturity dates, interest rates and credit rating.
All non-U.S. treasury bills/notes held by the Company are issued by the Federal and/or Provincial Governments of Canada and all have
investment grade ratings.
The Company corroborates the fair values provided by the independent third party for U.S. government sponsored enterprise notes
by comparing those provided against fair values determined by the Company utilizing quoted prices from vendors for identical securities
as provided by U.S. government bond dealers or prices as provided by the published index of U.S. Agency securities. The
U.S. government sponsored enterprise notes held by the Company are primarily agency notes and collateralized mortgage obligations
issued and backed by government organizations such as Freddie Mac and Fannie Mae and all have investment grade ratings.
RESEARCH IN MOTION ANNUAL REPORT 2011 59
RESEARCH IN MOTION LIMITED
Notes to the Consolidated Financial Statements continued
In millions of United States dollars, except share and per share data, and except as otherwise indicated