Blackberry 2012 Annual Report Download - page 134

Research In Motion Limited
Notes to the Consolidated Financial Statements
In millions of United States dollars, except share and per share data, and except as otherwise indicated
Realized gains and losses on available-for-sale securities comprise the following:
The contractual maturities of available-for-sale investments at March 3, 2012 were as follows:
As at March 3, 2012 and February 26, 2011, the Company had no investments with continuous unrealized losses.
The Company engages in securities lending to generate fee income. Collateral, which exceeds the market value of the loaned
securities, is retained by the Company until the underlying security has been returned to the Company. As at March 3, 2012, the
company had no securities on loan.
During fiscal 2011, the Company recognized an other-than-temporary impairment charge on its auction rate securities in the
amount of $6 million as a result of the lack of continuing liquidity in these securities. In valuing these securities, the Company
used a multi-year investment horizon and considered the underlying risk of the securities and the current market interest rate
environment. The Company has the ability and intent to hold these securities until such time that market liquidity returns to
normal levels, and does not consider the principal or interest amounts on these securities to be materially at risk. The Company
has not recorded any additional impairment on its auction rate securities as of March 3, 2012. As there is uncertainty as to when
market liquidity for auction rate securities will return to normal, the Company has classified the auction rate securities as long-
term investments on the consolidated balance sheet as at March 3, 2012.
During fiscal 2011, the Company also recognized an other-than-temporary impairment charge of $11 million against a portion o
f
its claim on Lehman Brothers International (Europe) (“LBIE”) trust assets. These assets are represented by principal and interest
payments from matured investments that were originally held at LBIE at the time of bankruptcy. The Company has classified
$25 million of these holdings as other investments on the consolidated balance sheet as at March 3, 2012 and February 26, 2011.
Previously, these holdings were classified as bank balances on the consolidated balance sheet as at February 27, 2010. The
Company has not recorded any additional impairment on its claim of trust assets as of March 3, 2012. The classification change
is represented in the consolidated statement of cash flows for the year ended February 26, 2011 as an acquisition of long-term
investments.
13
For the year ended
March 3,
2012
February 26,
2011
February 27,
2010
Realized gains
$ 1 $ 2 $
—
Realized losses
—
—
—
Net realized
g
ains $ 1 $ 2 $
—
Cost Basis Fair Value
Due in one year or less
$1,315 $1,316
Due in one to five
y
ears 192 192
Due after five
y
ears 35 36
No fixed maturit
y
date 5 5
$1,547 $1,549