Blackberry 2012 Annual Report Download - page 143

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
share price below book value. The result of this analysis concluded that the carrying value of the Company exceeded its
estimated fair value as at the balance sheet date, and as such, the second step of the goodwill impairment test was performed.
In the second step of the impairment test, the impairment loss was measured by estimating the implied fair value of the
Company’s goodwill and comparing it with its carrying value. Using the Company’s fair value determined in the first step as the
acquisition price in a hypothetical acquisition of the Company, the implied fair value of goodwill was calculated as the residual
amount of the acquisition price after allocations made to the fair value of net assets, including working capital, plant and
equipment and both recognized and unrecognized intangible assets. Based on the results of the second step of the goodwill
impairment test, it was concluded that the carrying value of goodwill was impaired. Consequently, the Company recorded a
goodwill impairment charge of $355 million and reported this amount as a separate line item in the Consolidated Statements of
Operations.
Accrued liabilities
Accrued liabilities were comprised of the following:
Other accrued liabilities, as noted in the above chart, include, among other things, salaries, payroll withholding taxes and
incentive accruals, none of which are greater than 5% of the current liabilities balance.
Subsequent to year end, the Company purchased for cash consideration 100% of the shares of Paratek Microwave Inc. whose
acquired technologies will be incorporated into the Company’s products to enhance radio frequency tuning technologies. Given
the timing of the acquisition and the terms of the purchase agreement, it is impracticable for the Company to disclose the assets
acquired, liabilities assumed and the amount of acquisition-related costs. Pro forma results of operations for the acquisition have
not been presented because the effects of the operations are not considered to be material to the Company’s consolidated results.
The initial accounting will be completed in the first quarter of fiscal 2013.
During fiscal 2012, the Company purchased for cash consideration 100% of the shares of a company whose technology will be
incorporated into the Company’s proprietary technology.
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As at
March 3,
2012
February 26,
2011
Marketing costs
$367 $419
Vendor inventor
y
liabilities 279 116
Warrant
y
408 459
Ro
y
alties 382 461
Carrier liabilities 524 308
Other
422 748
$2,382 $2,511
7. BUSINESS ACQUISITIONS