- During the three months ended September 27, 2008, the Company recorded investment impairment charges of $150 million, of which $141 million of charges were attributed to other-than-temporary declines in certain Sigma Fund investments, resulting from our positions in Lehman Brothers Holdings Inc., Washington Mutual, Inc. and Sigma Finance Corporation ("SFC"), a special investment vehicle managed by United Kingdom based Gordian Knot Limited. During the nine months ended September 27, 2008, the Company recorded investment impairment charges of $288 million, of which $145 million of charges were attributed to other-than-temporary declines in certain Sigma Fund investments and $83 million of charges attributed to an equity security held by the Company as a strategic investment.
Chief Financial Officer Paul Liska warned analysts on the company's third-quarter earnings call that an additional impairment of up to $43 million would be recorded in the fourth-quarter, a result of a soured stake in Sigma Finance Limited (managed by hedge fund Gordian Knot) -- not to be confused with the in-house fund of similar name -- which went into receivership.
Looking ahead to the holiday selling season, the outlook is grim, too, with management expecting lower unit sales in the handset market, a result of a continued dearth of new offerings available in the smartphone category.
This post first appeared in BNET's 10-Q Detective blog.