Research In Motion (RIM) is a leading designer, manufacturer, and marketer of innovative wireless solutions for the worldwide mobile communications market. RIM's products include the BlackBerry wireless platform, software development tools, and software/hardware licensing agreements.

The following excerpt from the company's statement of financial position as at February 26, 2005, shows Accrued litigation and related expenses for US \(\$ 455,610,000\). Note 15 to the company's financial statements provides an explanation for the nature of this liability.

\section*{Required:}
1. Review Note 15 to RIM's financial statements and identify the main reason for the reported liability as well as the specific amounts that the company recorded as liabilities during each of the fiscal years 2003-2006.
2. Reconstruct the journal entry to record the payment of \(\$ 612.5\) million in settlement of the NTP lawsuit, as disclosed in Note 15 to RIM's financial statements.
3. Does the company's annual report include information about other litigation during the past few years? If so, has the company provided an estimate of the liabilities that it may have to pay in the future? Explain.

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As at Liabilities Current Consolidated Balance Sheets March 4, 2006 February 26, 2005 (In thousands of U.S. dollars) Trade payables Accrued liabilities (Notes 13 and 18[c]) $ 94,954 144,912 $ 68,464 Accrued litigation and related expenses (Note 15) 87,133 455.610 Income taxes payable (Note 9) 17,584 3,149 Deferred revenue 20,968 16,235 Current portion of long-term debt (Note 10) 262 223 278,680 630,814 Long-term debt (Note 10) 6.851 6,504 $285,531 $637,318 Source: Research In Motion Annual Report 2006.