Blackberry 2012 Annual Report Download - page 219

Research In Motion Limited
Management’s Discussion and Analysis of Financial Condition and Results of Operations
L
ehman Brothers International (Europe)
Since March 1, 2005, the Company has maintained an investment account with Lehman Brothers International (Europe) (“LBIE”). As
of September 30, 2008, the date of the last account statement received by the Company, the Company held in the account $81 million
in combined cash and aggregate principal amount of fixed-income securities issued by third parties unrelated to LBIE or any other
affiliate of Lehman Brothers Holdings Inc (“LBHI”). Due to the insolvency proceedings instituted by LBHI and its affiliates,
including LBIE, commencing on September 15, 2008, the Company’s regular access to information regarding the account has been
disrupted. Following the appointment of the Administrators to LBIE the Company has asserted a trust claim in specie (the “Trust
Claim”) over the assets held for it by LBIE for the return of those assets in accordance with the insolvency procedure in the United
Kingdom. In the first quarter of fiscal 2010, the Company received a Letter of Return (the “Letter”) from the Administrators of LBIE
relating to the Trust Claim. The Letter noted that, based on the work performed to date, the Administrators had identified certain
assets belonging to the Company within the records of LBIE and that they are continuing to investigate the records for the remaining
assets included in the Trust Claims. An additional asset was identified as belonging to the Company in the fourth quarter of fiscal
2010. In the fourth quarter of fiscal 2010, the Company signed the ‘Form of Acceptance’ and ‘Claim Resolution Agreement’, which
are the necessary steps to have the identified assets returned. On June 8, 2010, the Company received a Claim Amount Notice from
LBIE identifying amounts to be paid out in respect to certain identified assets. On August 10, 2010, the Company received a payment
net of fees in the amount of $38 million representing monies for three of the identified assets listed in the Claim Amount Notice. The
Company currently has trust claims filed with the Administrators totalling $47 million for unreturned assets and continues to maintain
it has a valid trust claim on those assets. Based on communications with the Administrators, publicly available information published
by the Administrators, as well as the passage of time and the uncertainty associated with the Administrator not having specifically
identified these funds as trust funds, the Company recorded an other-than-temporary impairment charge to investment income in the
amount of $11 million during the third quarter of fiscal 2011. The Company did not record any further other-than-temporary
impairments in fiscal 2012.
As at March 3, 2012, the carrying value of the Company’s claim on LBIE assets is $36 million. The Company continues to work with
the Administrators for the return of the remaining assets, identified or not specifically identified, along with the past interest accrued
on these assets since LBIE began its administration proceedings. The Company will continue to take all actions it deems appropriate
to defend its rights to these holdings.
49