Cover
Cover - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 29, 2020 | Mar. 26, 2020 | Aug. 31, 2019 | |
Document Information [Line Items] | |||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 001-38232 | ||
Entity Registrant Name | BlackBerry Limited | ||
Entity Incorporation, State or Country Code | Z4 | ||
Document Type | 10-K | ||
Document Period End Date | Feb. 29, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001070235 | ||
Current Fiscal Year End Date | --02-29 | ||
Entity Emerging Growth Company | false | ||
Entity Common Stock, Shares Outstanding | 554,226,702 | ||
Amendment Flag | false | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Address, Postal Zip Code | N2K 0A7 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Interactive Data Current | Yes | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3,800 | ||
Entity Address, Address Line One | 2200 University Ave East | ||
Entity Address, City or Town | Waterloo | ||
Entity Address, State or Province | ON | ||
Entity Address, Country | CA | ||
City Area Code | (519) | ||
Local Phone Number | 888-7465 | ||
Entity Tax Identification Number | 98-0164408 | ||
Entity Small Business | false | ||
Documents Incorporated by Reference | Portions of the registrant’s proxy statement for its 2020 Annual Meeting of Shareholders are incorporated by reference into Part III of this Annual Report on Form 10-K to the extent stated herein. Such proxy statement will be filed with the Securities and Exchange Commission within 120 days of the registrant’s fiscal year ended February 29, 2020. | ||
NEW YORK STOCK EXCHANGE, INC. [Member] | |||
Document Information [Line Items] | |||
Security Exchange Name | NYSE | ||
Title of 12(g) Security | Common Shares | ||
Trading Symbol | BB |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Feb. 29, 2020 | Feb. 28, 2019 |
Current | ||
Cash and cash equivalents | $ 377 | $ 548 |
Short-term investments | 532 | 368 |
Accounts receivable, net (note 4) | 215 | 233 |
Other receivables | 14 | 19 |
Income taxes receivable | 6 | 9 |
Other current assets (note 4) | 52 | 56 |
Total current assets | 1,196 | 1,233 |
Restricted cash and cash equivalents | 49 | 34 |
Long-term investments | 32 | 55 |
Other long-term assets (note 4) | 65 | 28 |
Deferred income tax assets | 0 | 2 |
Operating lease right-of-use assets, net | 124 | 0 |
Property, plant and equipment, net (note 4) | 70 | 85 |
Goodwill (note 4) | 1,437 | 1,463 |
Intangible assets, net (note 4) | 915 | 1,068 |
Total assets | 3,888 | 3,968 |
Current | ||
Accounts payable | 31 | 48 |
Accrued liabilities (note 4) | 202 | 192 |
Income taxes payable (note 6) | 18 | 17 |
Short-term debentures | 606 | 0 |
Deferred revenue, current (note 13) | 264 | 253 |
Total current liabilities | 1,121 | 510 |
Deferred revenue, non-current | 109 | 136 |
Operating lease liabilities | 120 | 0 |
Other long-term liabilities | 9 | 19 |
Long-term debentures (note 7) | 0 | 665 |
Deferred income tax liabilities | 0 | 2 |
Total liabilities | 1,359 | 1,332 |
Capital stock and additional paid-in capital | ||
Preferred shares: authorized unlimited number of non-voting, cumulative, redeemable and retractable | 0 | 0 |
Common shares: authorized unlimited number of non-voting, redeemable, retractable Class A common shares and unlimited number of voting common shares Issued - 554,199,016 voting common shares (February 28, 2019 - 547,357,972) | 2,760 | 2,688 |
Deficit | (198) | (32) |
Accumulated other comprehensive income (loss) | (33) | (20) |
Total shareholders' equity | 2,529 | 2,636 |
Total liabilities and shareholders' equity | $ 3,888 | $ 3,968 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Feb. 29, 2020 | Feb. 28, 2019 |
Statement of Financial Position [Abstract] | ||
Common outstanding (in shares) | 554,199,016 | 547,357,972 |
Common issued (in shares) | 554,199,016 | 547,357,972 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions | Total | Capital Stock and Additional Paid-In Capital [Member] | Retained Earnings (Deficit) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Beginning Balance at Feb. 28, 2017 | $ 2,057 | $ 2,512 | $ (438) | $ (17) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | 405 | 405 | ||
Other comprehensive income (loss) | 7 | 7 | ||
Cumulative impact of adoption of ASU 2016-16 | (3) | (3) | ||
Stock-based compensation | 49 | 49 | ||
Share repurchases | (18) | (9) | (9) | |
Shares issued: | ||||
Exercise of stock options | 4 | 4 | ||
Employee share purchase plan | 4 | 4 | ||
Ending Balance at Feb. 28, 2018 | 2,505 | 2,560 | (45) | (10) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | 93 | 93 | ||
Other comprehensive income (loss) | (4) | (4) | ||
Cumulative impact of adoption of ASU 606 | (86) | (86) | ||
Cumulative impact of adoption of ASU 2016-01 | 6 | (6) | ||
Stock-based compensation | 67 | 67 | ||
Value Pre-combination service of replacement awards included in purchase consideration | 21 | 21 | ||
Shares issued: | ||||
Exercise of stock options | 1 | 1 | ||
Exchange shares related to Cylance acquisition | 35 | 35 | ||
Employee share purchase plan | 4 | 4 | ||
Ending Balance at Feb. 28, 2019 | 2,636 | 2,688 | (32) | (20) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | (152) | (152) | ||
Other comprehensive income (loss) | (13) | (13) | ||
Cumulative impact of adoption of ASC 842 | 14 | 0 | 14 | 0 |
Stock-based compensation | 63 | 63 | ||
Shares issued: | ||||
Exercise of stock options | 3 | 3 | ||
Employee share purchase plan | 6 | 6 | ||
Ending Balance at Feb. 29, 2020 | $ 2,529 | $ 2,760 | $ (198) | $ (33) |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Revenue | |||
Revenues | $ 1,040 | $ 904 | $ 932 |
Cost of sales | |||
Cost of Revenue | (277) | (206) | (262) |
Gross margin | 763 | 698 | 670 |
Operating expenses | |||
Research and development | 259 | 219 | 239 |
Selling, General and Administrative Expense | 493 | 409 | 476 |
Amortization | 194 | 136 | 153 |
Impairment of goodwill | 22 | 0 | 0 |
Impairment of Long-Lived Assets Held-for-use | 10 | 0 | 11 |
Debentures fair value adjustment | (66) | (117) | 191 |
Arbitration Awards and settlements, net | 0 | (9) | (683) |
Total operating expenses | 912 | 638 | 387 |
Operating income (loss) | (149) | 60 | 283 |
Investment income, net | 1 | 17 | 123 |
Income (loss) from continuing operations before income taxes | (148) | 77 | 406 |
Income (loss) before income taxes | (148) | 77 | 406 |
Provision for (recovery of) income taxes (note 6) | 4 | (16) | 1 |
Net income (loss) | $ (152) | $ 93 | $ 405 |
Earnings Per Share, Basic | $ (0.27) | $ 0.17 | $ 0.76 |
Earnings Per Share, Diluted | $ (0.32) | $ 0 | $ 0.74 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ (152) | $ 93 | $ 405 |
Other comprehensive income (loss) | |||
Net change in unrealized gains (losses) on available-for-sale investments | (2) | 1 | (3) |
Net changes in fair value and amounts reclassified to net income (loss) from derivatives designated as cash flow hedges during the year | (1) | 1 | (1) |
Foreign currency translation adjustment | (3) | (6) | 12 |
Actuarial losses associated with other post-employment benefit obligations | 0 | 0 | (1) |
Debenture fair value adjustment from instrument-specific credit components recorded in other comprehensive income (loss) - income (charge) | (7) | 0 | 0 |
Other comprehensive income (loss) | (13) | (4) | 7 |
Comprehensive income (loss) | $ (165) | $ 89 | $ 412 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Income tax expense, net | $ 0 | $ 0 | $ 0 |
Income tax expense, net | $ 0 | $ 0 | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Cash flows from operating activities | |||
Net income (loss) | $ (152) | $ 93 | $ 405 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Amortization | 212 | 149 | 177 |
Deferred income taxes | 0 | (25) | (7) |
Stock-based compensation | 63 | 67 | 49 |
Impairment of goodwill | 22 | 0 | 0 |
Impairment of Long-Lived Assets Held-for-use | 10 | 0 | 11 |
Non-cash consideration received from contracts with customers | (8) | (46) | 0 |
Debentures fair value adjustment | (66) | (117) | 191 |
Other long-term assets | 37 | 0 | 18 |
Other long-term liabilities | 2 | (12) | 5 |
Operating leases | (9) | 0 | 0 |
Other | 10 | 6 | 3 |
Net changes in working capital items | |||
Accounts receivable, net | 18 | (9) | 49 |
Other receivables | 5 | 52 | (44) |
Income taxes receivable | 3 | 17 | 2 |
Other assets | 2 | (1) | 39 |
Accounts payable | (17) | (15) | (82) |
Accrued liabilities | (15) | (21) | (36) |
Income taxes payable | 1 | (2) | 4 |
Deferred revenue | (18) | (36) | (44) |
Net cash provided by operating activities | 26 | 100 | 704 |
Cash flows from investing activities | |||
Acquisition of long-term investments | (1) | (2) | (27) |
Proceeds on sale or maturity of long-term investments | 19 | 2 | 77 |
Acquisition of property, plant and equipment | (12) | (17) | (15) |
Proceeds on sale of property, plant and equipment | 0 | 1 | 3 |
Acquisition of intangible assets | (32) | (32) | (30) |
Business acquisitions, net of cash acquired | (1,402) | 0 | |
Change in consideration for business acquisition | 1 | ||
Acquisition of short-term investments | (1,180) | (2,895) | (3,499) |
Proceeds on sale or maturity of short-term investments | 1,017 | 3,970 | 2,861 |
Net cash used in investing activities | (188) | (375) | (630) |
Cash flows from financing activities | |||
Issuance of common shares | 9 | 5 | 8 |
Common shares repurchased | 0 | 0 | (18) |
Finance Lease, Principal Payments | 2 | 0 | 0 |
Net cash provided by (used in) financing activities | 7 | 5 | (10) |
Effect of foreign exchange gain (loss) on cash and cash equivalents | (1) | (3) | 6 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (156) | (273) | 70 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, beginning of period | 582 | 855 | 785 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, end of period | $ 426 | $ 582 | $ 855 |
Blackberry Limited and Summary
Blackberry Limited and Summary of Significant Accounting Policies and Critical Accounting Estimates | 12 Months Ended |
Feb. 29, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Blackberry Limited and Summary of Significant Accounting Policies and Critical Accounting Estimates | BLACKBERRY LIMITED AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND CRITICAL ACCOUNTING ESTIMATES BlackBerry Limited (the “Company”) provides intelligent security software and services to enterprises and governments around the world. The Company secures more than 500 million endpoints, including 150 million cars. Based in Waterloo, Ontario, the Company leverages artificial intelligence and machine learning to deliver innovative solutions in the areas of cybersecurity, safety and data privacy solutions, and is a leader in the areas of endpoint security management, encryption, and embedded systems. The Company’s common shares trade under the ticker symbol “BB” on the New York Stock Exchange and the Toronto Stock Exchange. Basis of Presentation and Preparation The consolidated financial statements include the accounts of all subsidiaries of the Company with intercompany transactions and balances eliminated on consolidation. All of the Company’s subsidiaries are wholly owned. These consolidated financial statements have been prepared by management in accordance with United States generally accepted accounting principles (“U.S. GAAP”) on a basis consistent for all periods presented, except as described in Note 2. Certain of the comparative figures have been reclassified to conform to the current year’s presentation. The Company operates as a single reportable segment. For additional information concerning the Company’s segment reporting, see Note 13. Correction of Previously Issued Financial Statements Accounts receivable, contract assets and contract liabilities associated with certain contracts with customers accounted for under Accounting Standard Codification 606 (“ASC 606”) During fiscal 2020, the Company corrected an error associated with the presentation of accounts receivable and associated deferred revenues for certain contracts with customers on the comparative February 28, 2019 consolidated balance sheet. This correction had no impact to the deficit or the consolidated statement of operations for any period and impacts only the consolidated balance sheet as at February 28, 2019. Under ASC 606, a receivable is recorded when it is unconditional; that is, the only thing required for its collection is the passage of time. If a receivable is not unconditional, the amount is treated as a contract asset and netted against any contract liabilities, such as deferred revenue, associated with the same contract. Most of the Company’s contracts for its IoT software and services contain customer termination provisions, but do not have refund rights for the unused portion of any contract. As, contractually, all amounts are owed to the Company regardless of the customer’s actions, the Company has determined that the associated accounts receivable are unconditional, should not have been treated as contract assets and would therefore not be netted against the associated deferred revenue. The Company continues to net receivables that are not unconditional against the associated deferred revenue, such as pre-billed professional services or contracts with customers that have refund provisions. As a result of the correction, the balances in the Company’s consolidated balance sheet as at February 28, 2019 have been reclassified in the consolidated balance sheet as at February 29, 2020 as follows: As at Correction As at Assets Accounts receivable, net $ 194 $ 39 $ 233 Liabilities Deferred revenue, current $ 214 $ 39 $ 253 Accounting Policies and Critical Accounting Estimates Use of estimates The preparation of the consolidated financial statements requires management to make estimates and assumptions with respect to the reported amounts of assets, liabilities, revenue and expenses and the disclosure of contingent assets and liabilities. Significant areas requiring the use of management estimates relate to revenue-related estimates including variable consideration, standalone selling price (“SSP”), estimated customer life, if control of the license has transferred, value of non-cash consideration, right of return and customer incentive commitments, fair value of reporting units in relation to potential goodwill impairment, fair value of the Debentures, fair value of long-lived assets in relation to potential impairment, useful lives of property, plant and equipment and intangible assets, fair values of assets acquired and liabilities assumed in business combinations, provision for income taxes, realization of deferred income tax assets and the related components of the valuation allowance, allowance for doubtful accounts, incremental borrowing rate in determining the present value of lease liabilities and the determination of reserves for various litigation claims. Actual results could differ from these estimates, which were based upon circumstances that existed as of the date of the consolidated financial statements, February 29, 2020. Subsequent to this date, there have been significant changes to the global economic situation and to public securities markets as a consequence of the COVID-19 pandemic. It is reasonably possible that this could cause changes to estimates as a result of the financial circumstances of the markets in which the Company operates, the price of the Company’s publicly traded equity in comparison to the Company’s carrying value, and the health of the global economy. Such changes to estimates could potentially result in impacts that would be material to the consolidated financial statements, particularly with respect to the fair value of the Company’s reporting units in relation to potential goodwill impairment and the fair value of long-lived assets in relation to potential impairment. The significant accounting policies used in these U.S. GAAP consolidated financial statements are as follows: Foreign currency translation The U.S. dollar is the functional and reporting currency of the Company and substantially all of the Company’s subsidiaries. Foreign currency denominated assets and liabilities of the Company and its U.S. dollar functional currency subsidiaries are translated into U.S. dollars. Accordingly, monetary assets and liabilities are translated using the exchange rates in effect as at the consolidated balance sheet dates, and revenue and expenses are translated at the rates of exchange prevailing when the transactions occurred. Remeasurement adjustments are included in income. Non-monetary assets and liabilities are translated at historical exchange rates. Foreign currency denominated assets and liabilities of the Company’s non-U.S. dollar functional currency subsidiaries are translated into U.S. dollars at the exchange rates in effect as at the consolidated balance sheet dates. Revenue and expenses are translated using daily exchange rates. Exchange gains or losses arising from translation of foreign currency denominated assets and liabilities are included as a currency translation adjustment within accumulated other comprehensive income (loss) (“AOCI”). Cash and cash equivalents Cash and cash equivalents consist of balances with banks and liquid investments with maturities of three months or less at the date of acquisition. Accounts receivable, net The accounts receivable balance reflects invoiced and accrued revenue and is presented net of an allowance for doubtful accounts. The allowance for doubtful accounts reflects estimates of probable losses in the accounts receivable balance. The Company expects the majority of its accounts receivable balances to continue to come from large customers as it sells the majority of its software products and services through resellers and network carriers rather than directly. The Company evaluates the collectability of its accounts receivable balance based upon a combination of factors on a periodic basis such as specific credit risk of its customers, historical trends and economic circumstances. The Company, in the normal course of business, monitors the financial condition of its customers and reviews the credit history of each new customer. When the Company becomes aware of a specific customer’s inability to meet its financial obligations to the Company (such as in the case of bankruptcy filings or material deterioration in the customer’s operating results or financial position, and payment experiences), the Company records a specific bad debt provision to reduce the customer’s related accounts receivable to its estimated net realizable value. If circumstances related to specific customers change, the Company’s estimates of the recoverability of accounts receivable balances could be further adjusted. Investments The Company’s cash equivalents and investments, other than publicly issued equity securities and private equity investments without readily determinable fair value, consist of money market and other debt securities, which are classified as available-for-sale for accounting purposes and are carried at fair value. Unrealized gains and losses, net of related income taxes, are recorded in AOCI until such investments mature or are sold. The Company uses the specific identification method of determining the cost basis in computing realized gains or losses on available-for-sale investments, which are recorded in investment income. In the event of a decline in value that is other-than-temporary, the investment is written down to fair value with a charge to income. The Company does not exercise significant influence with respect to any of these investments. Publicly issued equity securities are recorded at fair value and revalued at each reporting period with changes in fair value recorded through investment income. The Company elects to record private equity investments without readily determinable fair value at cost minus impairment, and adjusted for any changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer. The Company reassesses each reporting period that its private equity investments without readily determinable fair value continue to qualify for this treatment. Investments with maturities at the time of purchase of three one one The Company assesses individual investments that are in an unrealized loss position to determine whether the unrealized loss is other-than-temporary. The Company makes this assessment by considering available evidence, including changes in general market conditions, specific industry and individual company data, the length of time and the extent to which the fair value has been less than cost, the financial condition, the near-term prospects of the individual investment and the Company’s intent and ability to hold the investment. In the event that a decline in the fair value of an investment occurs and that decline in value is considered to be other-than-temporary, an impairment charge is recorded in investment income equal to the difference between the cost basis and the fair value of the individual investment as at the consolidated balance sheet date of the reporting period for which the assessment was made. The fair value of the investment then becomes the new cost basis of the investment. If a debt security’s market value is below its amortized cost and either the Company intends to sell the security or it is more likely than not that the Company will be required to sell the security before its anticipated recovery, the Company records an other-than-temporary impairment charge to investment income for the entire amount of the impairment. For other-than-temporary impairments on debt securities that the Company does not intend to sell and it is not more likely than not that the entity will be required to sell the security before its anticipated recovery, the Company would separate the other-than-temporary impairment into the amount representing the credit loss and the amount related to all other factors. The Company would record the other-than-temporary impairment related to the credit loss as a charge to investment income, and the remaining other-than-temporary impairment would be recorded as a component of AOCI. Derivative financial instruments On March 1, 2019, the Company adopted Accounting Standards Update (“ASU”) 2017-12 related to accounting for hedging activities. The Company uses derivative financial instruments, including forward contracts and options, to hedge certain foreign currency exposures. The Company does not use derivative financial instruments for speculative purposes. The Company records all derivative instruments at fair value on the consolidated balance sheets. The fair value of these instruments is calculated based on notional and exercise values, transaction rates, market quoted currency spot rates, forward points, volatilities and interest rate yield curves. The accounting for changes in the fair value of a derivative depends on the intended use of the derivative instrument and the resulting designation. For derivative instruments designated as cash flow hedges, the effective portion of the derivative’s gain or loss is initially reported as a component of AOCI, net of tax, and subsequently reclassified into income in the same period or periods in which the hedged item affects income. The ineffective portion of the derivative’s gain or loss is recognized in current income. In order for the Company to receive hedge accounting treatment, the cash flow hedge must be highly effective in offsetting changes in the fair value of the hedged item and the relationship between the hedging instrument and the associated hedged item must be formally documented at the inception of the hedge relationship. Hedge effectiveness is formally assessed, both at hedge inception and on an ongoing basis, to determine whether the derivatives used in hedging transactions are highly effective in offsetting changes in the value of the hedged items and whether they are expected to continue to be highly effective in future periods. The Company formally documents relationships between hedging instruments and associated hedged items. This documentation includes: identification of the specific foreign currency asset, liability or forecasted transaction being hedged; the nature of the risk being hedged; the hedge objective; and the method of assessing hedge effectiveness. If an anticipated transaction is deemed no longer likely to occur, the corresponding derivative instrument is de-designated as a hedge and any associated unrealized gains and losses in AOCI are recognized in income at that time. Any future changes in the fair value of the instrument are recognized in current income. For any derivative instruments that do not meet the requirements for hedge accounting, or for any derivative instruments for which hedge accounting is not elected, the changes in fair value of the instruments are recognized in income in the current period and will generally offset the changes in the U.S. dollar value of the associated asset, liability or forecasted transaction. Property, plant and equipment, net Property, plant and equipment are stated at cost, less accumulated amortization. Amortization is provided using the following rates and methods: Buildings, leasehold improvements and other Straight-line over terms between 5 and 40 years BlackBerry operations and other information technology Straight-line over terms between 3 and 5 years Manufacturing, repair and research and development equipment Straight-line over terms between 1 and 5 years Furniture and fixtures Declining balance at 20% per annum Goodwill Goodwill represents the excess of the acquisition price in a business combination over the fair value of identifiable net assets acquired. Goodwill is allocated at the date of the business combination. Goodwill is not amortized but is tested for impairment annually on December 31 or more frequently if events or changes in circumstances indicate the asset may be impaired. These events and circumstances may include a significant change in legal factors or in the business climate, a significant decline in the Company’s share price, an adverse action or assessment by a regulator, unanticipated competition, a loss of key personnel, significant disposal activity and the testing of recoverability for a significant asset group. The Company’s annual impairment test was carried out in two steps. In the first step, the carrying amount of the reporting unit, including goodwill, was compared with its fair value. The estimated fair value was determined utilizing multiple approaches based on the nature of the reporting units being valued. In its analysis, the Company utilized multiple valuation techniques, including the income approach, discounted future cash flows, the market-based approach, and the asset value approach. The analysis requires significant judgment, including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term rate of revenue growth for our reporting units, estimation of the useful life over which cash flows will occur, terminal growth rate, profitability measures, and determination of the discount rates for the reporting units. The carrying amount of the Company’s assets was assigned to reporting units using reasonable methodologies based on the asset type. When the carrying amount of a reporting unit exceeds its fair value, goodwill of the reporting unit is considered to be impaired and the second step is necessary. Different judgments could yield different results. In fiscal 2020, the Company disaggregated one reporting unit and goodwill was assigned to the disaggregated reporting units based upon the relative fair value allocation approach. The completion of step one of the goodwill impairment test provided indications of impairment in certain reporting units, necessitating step two. In the second step, the implied fair value of the reporting unit’s goodwill is compared with its carrying amount to measure the amount of the impairment loss, if any. The second step involves significant judgment in the selection of assumptions necessary to arrive at an implied fair value of goodwill. Different judgments could yield different results. Using the impaired reporting units’ fair value determined in step one as the acquisition prices in hypothetical acquisitions of the reporting units, the implied fair values of goodwill were calculated as the residual amount of the acquisition price after allocations made to the fair values of net assets, including working capital, property, plant and equipment and both recognized and unrecognized intangible assets. Intangible assets Intangible assets with definite lives are stated at cost, less accumulated amortization. Amortization is provided on a straight-line basis over the following terms: Acquired technology Between 3 and 10 years Intellectual property Between 1 and 17 years Other acquired intangibles Between 2 and 10 years Acquired technology consists of intangible assets acquired through business acquisitions. Intellectual property consists of patents (both purchased and internally generated) and agreements with third parties for the use of intellectual property. Other acquired intangibles include items such as customer relationships and brand. The useful lives of intangible assets are evaluated at least annually to determine if events or circumstances warrant a revision to their remaining period of amortization. Legal, regulatory and contractual factors, the effects of obsolescence, demand, competition and other economic factors are potential indicators that the useful life of an intangible asset may be revised. Impairment of long-lived assets The Company reviews long-lived assets (“LLA”) such as property, plant and equipment and intangible assets with finite useful lives for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset or asset group may not be recoverable. These events and circumstances may include significant decreases in the market price of an asset or asset group, significant changes in the extent or manner in which an asset or asset group is being used by the Company or in its physical condition, a significant change in legal factors or in the business climate, a history or forecast of future operating or cash flow losses, significant disposal activity, a significant decline in the Company’s share price, a significant decline in revenue or adverse changes in the economic environment. The LLA impairment test requires the Company to identify its asset groups and test impairment of each asset group separately. Determining the Company’s asset groups and related primary assets requires significant judgment by management. Different judgments could yield different results. The Company’s determination of its asset groups, its primary asset and its remaining useful life, and estimated cash flows are significant factors in assessing the recoverability of the Company’s assets for the purposes of LLA impairment testing. The Company’s share price can be affected by, among other things, changes in industry or market conditions, including the effect of competition, changes in the Company’s results of operations, changes in the Company’s forecasts or market expectations relating to future results, and the Company’s strategic initiatives and the market’s assessment of any such factors. When indicators of impairment exist, LLA impairment is tested using a two-step process. The Company performs a cash flow recoverability test as the first step, which involves comparing the asset group’s estimated undiscounted future cash flows to the carrying amount of its net assets. If the net cash flows of the asset group exceed the carrying amount of its net assets, LLA are not considered to be impaired. If the carrying amount exceeds the net cash flows, there is an indication of potential impairment and the second step of the LLA impairment test is performed to measure the impairment amount. The second step involves determining the fair value of the asset group. Fair values are determined using valuation techniques that are in accordance with U.S. GAAP, including the market approach, income approach and cost approach. If the carrying amount of the asset group’s net assets exceeds the fair value of the Company, then the excess represents the maximum amount of potential impairment that will be allocated to the asset group, with the limitation that the carrying value of each separable asset cannot be reduced to a value lower than its individual fair value. The total impairment amount allocated is recognized as a non-cash impairment loss. The Company reviews any changes in events and circumstances that have occurred on a quarterly basis to determine if indicators of LLA impairment exist. Business acquisitions The Company accounts for its acquisitions using the acquisition method whereby identifiable assets acquired and liabilities assumed are measured at their fair values as of the date of acquisition. The excess of the acquisition price over such fair value, if any, is recorded as goodwill, which is not expected to be deductible for tax purposes. The Company includes the operating results of each acquired business in the consolidated financial statements from the date of acquisition. Royalties The Company recognizes its liability for royalties in accordance with the terms of existing license agreements. Where license agreements are not yet finalized, the Company recognizes its current estimates of the obligation in accrued liabilities in the consolidated financial statements. When the license agreements are subsequently finalized, the estimate is revised accordingly. Management’s estimates of royalty rates are based on the Company’s historical licensing activities, royalty payment experience, and forward-looking expectations. Convertible debentures The Company elected to measure its outstanding convertible debentures (collectively, the “Debentures” as defined in Note 7) at fair value in accordance with the fair value option. Each period, the fair value of the Debentures is recalculated and resulting gains and losses from the change in fair value of the Debentures associated with non-credit components are recognized in income, while the change in fair value associated with credit components is recognized in AOCI. The fair value of the Debentures has been determined using the significant inputs of principal value, interest rate spreads and curves, embedded call option prices, observable trades of the Debentures, the market price and volatility of the Company’s listed common shares and the Company’s implicit credit spread. Leases On March 1, 2019, the Company adopted the new standard on leases, Accounting Standards Codification 842 (“ASC 842”). Operating lease right-of-use (“ROU”) assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. As most of the Company’s leases do not provide an implicit discount rate, the Company primarily uses its incremental borrowing rate, based on the information available at the commencement date of the lease, in determining the present value of future payments. The Company’s incremental borrowing rate requires significant judgment and is determined based on the rate of interest that the Company would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term in a similar economic environment. The operating lease ROU asset includes any lease payments made, lease incentives and initial direct costs incurred. The lease terms include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. In some cases, the Company has index-based variable lease payments for which an estimated rate is applied to the initial lease payment to determine future lease payment amounts. The Company has building, car and data center lease agreements with lease and non-lease components that are accounted for separately. For lease terms of 12 months or less on commencement date, the Company does not apply the ASC 842 recognition requirements and recognizes the lease payments as lease cost on a straight-line basis over the lease term. Prior to the adoption of ASC 842, the Company classified leases as either capital or operating leases. Capital leases were capitalized on the consolidated balance sheet and reported on the consolidated statement of operations. Operating leases were considered off-balance sheet transactions and expensed as incurred. See Note 12 for additional information related to the Company’s leases. Revenue recognition On March 1, 2018, the Company adopted ASC 606 and all related amendments using the modified retrospective method. The Company recognizes revenue, when control of the promised products or services are transferred to customers, in an amount that reflects the consideration that the Company expects to receive in exchange for those products and services. Revenue is recognized through the application of the following steps: (i) identification of the contract, or contracts, with a customer; (ii) identification of the performance obligations in the contract; (iii) determination of the transaction price; (iv) allocation of the transaction price to the performance obligations in the contract; and (v) recognition of revenue when (or as) the Company satisfies a performance obligation. A contract exists with a customer when both parties have approved the contract, commitments to performance and rights of each party (including payment terms) are identified, the contract has commercial substance and collection of substantially all consideration is probable for goods and services that are transferred. Performance obligations promised in a contract are identified based on the goods and services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the good or service either on its own or together with other available resources, and are distinct in the context of the contract, whereby the transfer of the good or service is separately identifiable from other promises in the contract. If these criteria are not met, the promised goods and services are accounted for as a combined performance obligation. The transaction price is determined based on the consideration the Company expects to be entitled to in exchange for transferring promised goods and services to the customer, excluding amounts collected on behalf of third parties such as sales taxes. Determining the transaction price requires significant judgment. To the extent the transaction price includes variable consideration, the Company estimates the amount of variable consideration that should be included in the transaction price utilizing either the expected value method or the most likely amount method depending on the nature of the variable consideration. Non-cash consideration received is measured at fair value at contract inception. The estimated fair value is determined utilizing multiple valuation techniques, including the discounted future cash flows and the market-based approach. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative SSP. The Company’s method for allocation of consideration to be received and its method of estimation of SSP are described below under “Significant judgments”. For each of the Company’s major categories of revenue, the following paragraphs describe the applicable specific revenue recognition policy, and when the Company satisfies its performance obligations. Nature of products and services Internet of Things IoT includes revenue from the Company’s suite of security software products and services designed to secure endpoint communications for the IoT, including BlackBerry Unified Endpoint Manager (“UEM”) and BlackBerry Dynamics, among other products and applications, as well as revenue from the sale of the Company’s AtHoc Alert secure networked crisis communications solution, its SecuSUITE secure voice and text solution, and the technologies offered by BlackBerry QNX. The Company generates software license revenue from both term subscription and perpetual license contracts, both of which are commonly bundled with support, maintenance and professional services. If the licensed software in a contract requires access to the Company’s proprietary secure network infrastructure in order to function, revenue from term subscription contracts is recognized over time, ratably over the term, and revenue from perpetual license contracts is recognized over time, ratably over the expected customer life, which in most cases the Company has estimated to be four BlackBerry QNX software license revenue from both term subscription and perpetual contracts is recognized at a point in time when the software is made available to the customer for use, as the software has standalone functionality and the license is distinct in the context of the contract. The licenses for certain software embedded into hardware such as automotive infotainment systems and advanced driver-assistance systems are sold as a sales-based royalty where intellectual property is the predominant item to which the royalty relates, and are recognized based on actual volumes and underlying sales by the customer of the hardware with the embedded software except in cases where the customer makes a non-refundable prepayment related to its future royalties, in which case consideration is fixed and recognized immediately. Revenue from technical support is recognized over the support period. Revenue from professional services is recognized as the customer simultaneously receives and consumes the benefits provided by the Company’s performance as the services are provided. This can be on a proportional performance basis, or over the term of the contract. Revenue from software maintenance services is recognized over the length of the maintenance period, with an average term of one BlackBerry Cylance BlackBerry Cylance includes revenue from the Company’s artificial intelligence and machine learning-based platform consisting of CylancePROTECT, CylanceOPTICS, CylanceGUARD professional services and other cybersecurity applications. The Company generates software license revenue from term subscription products, which includes technical support, and any updates and upgrades. Professional services are provided through hourly rate and fixed fee arrangements. The Compa |
Adoption of Accounting Policies
Adoption of Accounting Policies | 12 Months Ended |
Feb. 29, 2020 | |
Accounting Policies [Abstract] | |
Adoption of Accounting Policies | ADOPTION OF ACCOUNTING POLICIES Accounting Standards Adopted During Fiscal 2020 ASC 842, Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASC 842 on leases. The standard requires companies to include lease obligations in their balance sheets, including a dual approach for lessee accounting under which a lessee would account for leases as finance leases or operating leases. Both finance leases and operating leases result in the lessee recognizing a ROU asset and a corresponding lease liability. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred on transition. For finance leases, the lessee will recognize interest expense and amortization of the ROU asset, and for operating leases, the lessee will recognize a straight-line total lease expense. The short-term lease exemption allows the Company to not apply the recognition requirements to lease terms of 12 months or less on the commencement date. The Company elected the package of practical expedients where lease classification, embedded leases, and initial direct costs are not reassessed upon adoption of ASC 842. The guidance is effective for interim and annual periods beginning after December 15, 2018. The Company adopted this guidance in the first quarter of fiscal 2020 using the modified retrospective method for all leases that existed at or commence after the date of initial application. As a result of the adoption of the new standard on leases, the Company recognized ROU assets of approximately $161 million, lease liabilities of approximately $175 million, and a cumulative adjustment to increase the deficit of approximately $14 million in the consolidated balance sheet as at March 1, 2019. Future lease costs included in the Resource Allocation Program (“RAP”) of approximately $14 million, which were accrued for prior to adoption of ASC 842, and were previously included in accrued liabilities and other long-term liabilities, are now presented in accrued liabilities and operating lease liabilities in the consolidated balance sheet as at March 1, 2019. As a result, total operating lease liabilities were $189 million in the consolidated balance sheet as at March 1, 2019. ASU 2017-12, Hedge Accounting In August 2017, the FASB issued ASU 2017-12. This guidance expands the range of strategies that qualify for hedge accounting, changes how certain hedging relationships are presented in the financial statements and simplifies the application of hedge accounting in certain situations. The guidance is effective for interim and annual periods beginning after December 15, 2018. The Company adopted this guidance in the first quarter of fiscal 2020 and it did not have a material impact to the consolidated financial results. Issued Accounting Pronouncements In June 2016, the FASB issued guidance related to the measurement of credit losses on financial instruments, ASU 2016-13. This guidance replaces the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses, requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates, and requires entities to estimate an expected lifetime credit loss on its financial assets. The guidance is effective for interim and annual periods beginning after December 15, 2019. The Company will adopt this guidance in the first quarter of fiscal 2021 and does not expect the adoption to have a material impact on its results of operations, financial position and disclosures. |
Fair Value Measurements, Cash,
Fair Value Measurements, Cash, Cash Equivalents and Investments | 12 Months Ended |
Feb. 29, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Fair Value Measurements, Cash, Cash Equivalents and Investments | FAIR VALUE MEASUREMENTS, CASH, CASH EQUIVALENTS AND INVESTMENTS Fair Value The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use in pricing the asset or liability, such as inherent risk, non-performance risk and credit risk. The Company applies the following fair value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value into three levels: • Level 1 - Unadjusted quoted prices at the measurement date for identical assets or liabilities in active markets. • Level 2 - Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. • Level 3 - Significant unobservable inputs that are supported by little or no market activity. The fair value hierarchy also requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Recurring Fair Value Measurements The Company’s cash and cash equivalents, accounts receivable, other receivables, accounts payable and accrued liabilities are measured at an amount that approximates their fair values (Level 2 measurement) due to their short maturities. In determining the fair value of investments held (other than those classified as Level 3), the Company primarily relies on an independent third-party valuator for the fair valuation of securities. The Company also reviews the inputs used in the valuation process and assesses the pricing of the securities for reasonableness after conducting its own internal collection of quoted prices from brokers. Fair values for all investment categories provided by the independent third-party valuator that are in excess of 0.5% from the fair values determined by the Company are communicated to the independent third-party valuator for consideration of reasonableness. The independent third-party valuator considers the information provided by the Company before determining whether a change in their original pricing is warranted. The Company’s investments (other than those classified as Level 3) largely consist of securities issued by major corporate and banking organizations, the provincial and federal governments of Canada, international government banking organizations and the United States Department of the Treasury and are all investment grade. The Company also holds a limited amount of equity securities following the initial public offering by the issuer of a previous private equity investment. The following table summarizes the changes in fair value of the Company’s Level 3 assets for the years ended February 29, 2020 and February 28, 2019: Level 3 Balance at February 28, 2018 $ 20 Principal repayments (1) Balance at February 28, 2019 19 Principal repayments (19) Balance at February 29, 2020 $ — The Company recognizes transfers in and out of levels within the fair value hierarchy at the end of the reporting period in which the actual event or change in circumstance occurred. There were no significant transfers in or out of Level 3 assets during the years ended February 29, 2020 or February 28, 2019. The Company’s Level 3 assets previously consisted of auction rate securities. The Company realized $3 million in gains on auction rate securities. The Company no longer has Level 3 assets as of February 29, 2020. Cash, Cash Equivalents and Investments The components of cash, cash equivalents and investments by fair value level as at February 29, 2020 were as follows: Cost Basis Unrealized Unrealized Other-than- Fair Value Cash and Short-term Long-term Restricted Cash Bank balances $ 100 $ — $ — $ — $ 100 $ 100 $ — $ — $ — Other investments 32 — — — 32 — — 32 — 132 — — — 132 100 — 32 — Level 1: Equity securities 10 — (8) — 2 — 2 — — Level 2: Term deposits, certificates of deposits, and GICs 118 — — — 118 44 25 — 49 Bankers’ acceptances/bearer deposit notes 84 — — — 84 30 54 — — Commercial paper 276 — — — 276 108 168 — — Non-U.S. promissory notes 133 — — — 133 25 108 — — Non-U.S. government sponsored enterprise notes 144 — — — 144 — 144 — — Non-U.S. treasury bills/notes 56 — — — 56 25 31 — — U.S. treasury bills/notes 45 — — — 45 45 — — — 856 — — — 856 277 530 — 49 $ 998 $ — $ (8) $ — $ 990 $ 377 $ 532 $ 32 $ 49 The components of cash, cash equivalents and investments by fair value level as at February 28, 2019 were as follows: Cost Basis Unrealized Unrealized Other-than- Fair Value Cash and Short-term Long-term Restricted Cash and Cash Equivalents Bank balances $ 326 $ — $ — $ — $ 326 $ 322 $ — $ — $ 4 Other investments 36 — — — 36 — — 36 — 362 — — — 362 322 — 36 4 Level 1: Equity securities 10 — (10) — — — — — — Level 2: Term deposits, certificates of deposits, and GICs 85 — — — 85 — 55 — 30 Bankers’ acceptances 39 — — — 39 4 35 — — Commercial paper 264 — — — 264 177 87 — — Non-U.S. promissory notes 20 — — — 20 20 — — — Non-U.S. government sponsored enterprise notes 139 — — — 139 25 114 — — Non-U.S. treasury bills/notes 35 — — — 35 — 35 — — U.S. treasury bills/notes 42 — — — 42 — 42 — — 624 — — — 624 226 368 — 30 Level 3: Auction rate securities 20 2 — (3) 19 — — 19 — $ 1,016 $ 2 $ (10) $ (3) $ 1,005 $ 548 $ 368 $ 55 $ 34 As at February 29, 2020, the Company had private equity investments without readily determinable fair value of $32 million (February 28, 2019 - $36 million). During the year ended February 29, 2020, there was a $3 million impairment recognized relating to a certain private equity investment without readily determinable fair value (February 28, 2019 and February 28, 2018 - nil). There were no realized gains or losses on available-for-sale securities for the year ended February 29, 2020 (realized losses of nil and $1 million for the years ended February 28, 2019 and February 28, 2018, respectively). The Company has restricted cash and cash equivalents, consisting of cash and securities pledged as collateral to major banking partners in support of the Company’s requirements for letters of credit. These letters of credit support certain leasing arrangements entered into in the ordinary course of business and also support patent litigation in certain jurisdictions. The letters of credit are for terms ranging from one six The following table provides a reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents as at February 29, 2020, February 28, 2019 and February 28, 2018 from the consolidated balance sheets to the consolidated statements of cash flows: As at February 29, 2020 February 28, 2019 February 28, 2018 Cash and cash equivalents $ 377 $ 548 $ 816 Restricted cash and cash equivalents 49 34 39 Total cash, cash equivalents, restricted cash, and restricted cash equivalents presented in the consolidated statements of cash flows $ 426 $ 582 $ 855 The contractual maturities of available-for-sale investments as at February 29, 2020 and February 28, 2019 were as follows: As at February 29, 2020 February 28, 2019 Cost Basis Fair Value Cost Basis (1) Fair Value Due in one year or less $ 856 $ 856 $ 624 $ 624 Due after five years — — 17 19 No fixed maturity 10 2 10 — $ 866 $ 858 $ 651 $ 643 ______________________________ (1) Cost basis includes other-than-temporary impairment. |
Consolidated Balance Sheets Det
Consolidated Balance Sheets Details | 12 Months Ended |
Feb. 29, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Consolidated Balance Sheet Details | CONSOLIDATED BALANCE SHEET DETAILS Accounts Receivable, Net The allowance for doubtful accounts as at February 29, 2020 was $9 million (February 28, 2019 - $25 million). There were two customers that comprised more than 10% of accounts receivable as at February 29, 2020 (February 28, 2019 - one customer comprised more than 10%). Other Current Assets As at February 29, 2020, other current assets include items such as the current portion of deferred commissions and prepaid expenses, among other items, none of which were greater than 5% of the current assets balance in all years presented. Property, Plant and Equipment, Net Property, plant and equipment comprised the following: As at February 29, 2020 February 28, 2019 Cost Buildings, leasehold improvements and other $ 72 $ 68 BlackBerry operations and other information technology 84 85 Manufacturing, repair and research and development equipment 73 73 Furniture and fixtures 11 14 240 240 Accumulated amortization 170 155 Net book value $ 70 $ 85 For the year ended February 29, 2020, amortization expense related to property, plant and equipment amounted to $24 million (February 28, 2019 - $20 million; February 28, 2018 - $36 million). Intangible Assets, Net Intangible assets comprised the following: As at February 29, 2020 Cost Accumulated Net Book Acquired technology $ 1,019 $ 636 $ 383 Intellectual property 489 275 214 Other acquired intangibles 494 176 318 $ 2,002 $ 1,087 $ 915 As at February 28, 2019 Cost Accumulated Net Book Acquired technology $ 1,020 $ 557 $ 463 Intellectual property 466 239 227 Other acquired intangibles 494 116 378 $ 1,980 $ 912 $ 1,068 For the year ended February 29, 2020, amortization expense related to intangible assets amounted to $188 million (February 28, 2019 - $129 million; February 28, 2018 - $141 million). Total additions to intangible assets in fiscal 2020 amounted to $32 million (fiscal 2019 - $725 million which included $646 million in connection with the Cylance acquisition). During fiscal 2020, the additions to intangible assets primarily consisted of patents received as non-cash consideration in a contract with a customer and payments for intellectual property relating to patent registration, licenses and maintenance fees. Based on the carrying value of the identified intangible assets as at February 29, 2020, and assuming no subsequent impairment of the underlying assets, the annual amortization expense for each of the succeeding years is expected to be as follows: fiscal 2021 - $167 million; fiscal 2022 - $144 million; fiscal 2023 - $115 million; fiscal 2024 - $106 million; and fiscal 2025 - $100 million. The weighted average remaining useful lives of the intangible assets are as follows: As at February 29, 2020 February 28, 2019 Acquired technology 5.4 years 5.5 years Intellectual property 6.6 years 7.3 years Other acquired intangibles 6.0 years 6.8 years Impairment of LLA During the year ended February 29, 2020, the Company recorded a non-cash, pre-tax and after-tax impairment charge of$10 million consisting of $8 million related to operating lease ROU assets for certain facilities (see Note 12) and $2 million related to property, plant and equipment associated with those facilities. There were no LLA impairment charges taken in fiscal 2019. During fiscal 2018, the Company recorded an LLA impairment charge of $11 million, which was applicable to certain prepaid royalty arrangements associated with the Company’s sale of handheld devices. Goodwill Changes to the carrying amount of goodwill during the fiscal years ended February 29, 2020, February 28, 2019 and February 28, 2018 were as follows: Carrying Amount Carrying amount as at February 28, 2017 $ 559 Effect of foreign exchange on non-U.S. dollar denominated goodwill 10 Carrying amount as at February 28, 2018 569 Effect of foreign exchange on non-U.S. dollar denominated goodwill (5) Goodwill acquired through business combination completed during the year 899 Carrying amount as at February 28, 2019 1,463 Measurement period adjustment (see Note 5) (2) Goodwill impairment charge (22) Effect of foreign exchange on non-U.S. dollar denominated goodwill (2) Carrying amount as at February 29, 2020 $ 1,437 Based on the results of step two of the goodwill impairment test in fiscal 2020 discussed in Note 1, it was concluded that the carrying value of goodwill was impaired. Consequently, the Company recorded a goodwill impairment charge of $22 million in the fourth quarter of fiscal 2020, relating to its BBM Consumer reporting unit. Other Long-term Assets As at February 29, 2020, other long-term assets include long-term portion of deferred commission and long-term receivables, among other items, none of which were greater than 5% of total assets in any of the periods presented. Accrued Liabilities Accrued liabilities comprised the following: As at February 29, 2020 February 28, 2019 Variable incentive accrual $ 33 $ 36 Operating lease liabilities, current (note 12) 31 — Other 138 156 $ 202 192 Other accrued liabilities include accrued vendor liabilities, accrued carrier liabilities and payroll withholding taxes, among other items, none of which were greater than 5% of the current liabilities balance. Other Long-term Liabilities Other long-term liabilities consist of the long-term portion of finance lease liabilities and non-lease components of RAP liabilities. It previously included the present value of the long-term portion of accrued future lease payments associated with RAP, which are presented in operating lease liabilities as of the adoption of ASC 842. See Note 1. |
Business Acquisitions
Business Acquisitions | 12 Months Ended |
Feb. 29, 2020 | |
Business Combinations [Abstract] | |
Business Acquisitions | BUSINESS ACQUISITIONS There were no business acquisitions during fiscal 2020. On February 21, 2019, the Company acquired all of the issued and outstanding shares of Cylance Inc. (“Cylance”), an artificial intelligence and cybersecurity leader, for approximately $1.4 billion in cash and common shares, plus the assumption of unvested employee incentive awards. The acquisition of Cylance is a strategic addition to the Company’s end-to-end secure communications portfolio. The accounting for the acquisition of Cylance was completed in the second quarter of fiscal 2020, as the calculation of working capital of Cylance was finalized. The following table summarizes the fair value allocations of the acquisition price of the assets acquired and liabilities assumed during fiscal 2019: Preliminary Balance February 28, 2019 Measurement Period Adjustment Balance as at August 31, 2019 Non-cash assets acquired Current assets $ 40 $ (6) $ 34 Property, plant and equipment and other long-term assets 25 — 25 Intangible assets Acquired technology 283 — 283 In-process research and development 66 — 66 Customer relationships 277 — 277 Trade name 20 — 20 Goodwill (1) 899 (2) 897 1,610 (8) 1,602 Liabilities assumed Current liabilities 27 1 28 Debt 125 — 125 Deferred revenue (2) 95 (2) 93 Deferred tax liability 22 1 23 Other long-term liabilities 8 (7) 1 277 (7) 270 Net non-cash assets acquired 1,333 (1) 1,332 Cash acquired 10 — 10 Restricted cash acquired 4 — 4 Net assets acquired 1,347 (1) 1,346 Settlement of acquired debt (3) 125 — 125 $ 1,472 $ (1) $ 1,471 Consideration Cash consideration $ 1,416 $ (1) $ 1,415 Replacement Awards issued (4) 21 — 21 Exchange shares (5) 35 — 35 Total consideration $ 1,472 $ (1) $ 1,471 _____________________________ (1) Goodwill represents the excess of the acquisition price over the fair value of net assets acquired, which is not expected to be deductible for tax purposes when goodwill results from share purchases. (2) The fair value of deferred revenue represents the costs to service the assumed obligations, plus a normal profit margin as required under purchase accounting. (3) $125 million in cash was paid to existing debt holders to settle Cylance debt outstanding at acquisition. (4) Fair value of 8,320,130 options and 824,046 RSUs (“Replacement Awards”) issued in connection with unvested Cylance employee equity awards, related to pre-combination service and considered purchase consideration. See Note 8(b) for details on the Replacement Awards. (5) In lieu of cash, a proportion of consideration owed to certain Cylance shareholders will be paid in BlackBerry shares issued from treasury in equal instalments on the first three anniversary dates of the acquisition. There are no service or other requirements associated with the issuance of these shares. The weighted average amortization periods of the acquired technology, in-process research and development, customer relationships and trade name related to the business acquisitions completed during the year ended February 28, 2019 were approximately 8 years, 9 years, 9 years and 7 years, respectively. The Company incurred $12 million in acquisition-related costs included in selling, general and administration expenses for the fiscal year ended February 28, 2019. The Company recorded a measurement period recovery of $2 million in selling, general and administration expenses during the fiscal year ended February 29, 2020, as the amount would have been recognized in the prior fiscal year, if the adjustment to the provisional amounts had been recognized as of the acquisition date. The amounts of revenue and loss before income taxes of the acquisition above included in the consolidated statement of operations for the year ended February 28, 2019 are as follows: Revenue Loss before income taxes Actuals from acquisition date to February 28, 2019 $ 2 $ (5) Supplemental Pro Forma Combined Financial Statements The following pro forma combined results for the year ended February 28, 2019 reflect the consolidated statement of operations of the Company as if the acquisition of Cylance had occurred at the beginning of fiscal 2019. These results combine the historical results of Cylance’s consolidated statement of operations and are not necessarily indicative of the consolidated results of operations of the combined business had the acquisition actually occurred at the beginning of fiscal 2019 or of the results of future operations of the combined business. The supplemental pro forma information, as if the acquisition had occurred on March 1, 2018, is as follows: For the Year Ended February 28, 2019 (unaudited) Revenue $ 1,027 Net loss (1) (77) ______________________________ (1) Includes measurement period adjustments identified during the fiscal year ended February 29, 2020 of $2 million to reflect if the adjustment to the provisional amounts had been recognized as of the acquisition date. |
Debentures
Debentures | 12 Months Ended |
Feb. 29, 2020 | |
Debt Disclosure [Abstract] | |
Debentures | DEBENTURES On September 7, 2016, Fairfax Financial Holdings Limited (“Fairfax”) and other institutional investors invested in the Company through a private placement of new debentures in an aggregate amount of $605 million (the “Debentures”). Interest on the Debentures is payable quarterly in arrears at a rate of 3.75% per annum. The Debentures mature on November 13, 2020, and each $1,000 of Debentures is convertible at any time into 100 common shares of the Company, for a total of 60.5 million common shares at a price of $10.00 per share for all Debentures, subject to adjustments. Covenants associated with the Debentures include limitations on the Company’s total indebtedness. Under specified events of default, the outstanding principal and any accrued interest on the Debentures become immediately due and payable upon request of holders holding not less than 25% of the principal amount of the Debentures then outstanding. During an event of default, the interest rate rises to 7.75% per annum. The Debentures are subject to a change of control provision whereby the Company would be required to make an offer to repurchase the Debentures at 115% of par value if a person or group (not affiliated with Fairfax) acquires 35% of the Company’s outstanding common shares, acquires all or substantially all of its assets, or if the Company merges with another entity and the Company’s existing shareholders hold less than 50% of the common shares of the surviving entity. The following table summarizes the changes in fair value of the Debentures for the fiscal year ended February 29, 2020, February 28, 2019 and February 28, 2018: As at February 29, 2020 Balance as at February 28, 2017 $ 591 Change in fair value of the Debentures 191 Balance as at February 28, 2018 782 Change in fair value of the Debentures (117) Balance as at February 28, 2019 665 Change in fair value of the Debentures (59) Balance as at February 29, 2020 $ 606 The difference between the fair value of the Debentures and the unpaid principal balance of $605 million is $1 million. The fair value of the Debentures is measured using Level 2 fair value inputs. The following table shows the impact of the change in fair value of the Debentures for the fiscal years ended February 29, 2020, February 28, 2019 and February 28, 2018: For the Years Ended February 29, 2020 February 28, 2019 February 28, 2018 Income (charge) associated with the change in fair value from non-credit components recorded in the consolidated statements of operations (1) $ 66 $ 117 $ (191) Charges associated with the change in fair value from instrument-specific credit components recorded in AOCI (1) (7) — — Total decrease (increase) in the fair value of the Debentures (1) $ 59 $ 117 $ (191) ______________________________ (1) During the year ended February 28, 2018 and prior to the adoption of ASU 2016-01 on March 1, 2018, the changes in fair value from both instrument-specific credit components and non-credit components of the Debentures were recorded in the consolidated statement of operations for the fiscal year ended February 28, 2018. The Company recorded interest expense related to the Debentures of $23 million, which has been included in investment income, net on the Company’s consolidated statements of operations in fiscal 2020 (fiscal 2019 - $24 million; fiscal 2018 - $23 million). The Company is required to make quarterly interest-only payments of approximately $6 million in the first and second quarter of fiscal 2021 and approximately $5 million in the third quarter of fiscal 2021 when the Debentures mature. |
Capital Stock
Capital Stock | 12 Months Ended |
Feb. 29, 2020 | |
Equity [Abstract] | |
Capital Stock | CAPITAL STOCK (a) Capital Stock The Company is authorized to issue an unlimited number of voting common shares, an unlimited number of non-voting, redeemable, retractable Class A common shares and an unlimited number of non-voting, cumulative, redeemable, retractable preferred shares. As at February 29, 2020 and February 28, 2019, there were no Class A common shares or preferred shares outstanding. The following details the changes in issued and outstanding common shares for the years ended February 29, 2020, February 28, 2019 and February 28, 2018: Capital Stock and Stock Amount Common shares outstanding as at February 28, 2017 530,497 $ 2,512 Exercise of stock options 536 4 Common shares issued for restricted share unit settlements 7,258 — Stock-based compensation — 49 Share repurchase (1,992) (9) Common shares issued for employee share purchase plan 435 4 Common shares outstanding as at February 28, 2018 536,734 2,560 Exercise of stock options 105 1 Common shares issued for restricted share unit settlements 10,156 — Stock-based compensation — 67 Exchange shares issued from Cylance acquisition (see note 5) — 35 Value of pre-combination service related to Replacement Awards included in purchase consideration — 21 Common shares issued for employee share purchase plan 363 4 Common shares outstanding as at February 28, 2019 547,358 2,688 Exercise of stock options 1,189 3 Common shares issued for restricted share unit settlements 3,361 — Stock-based compensation — 63 Common shares issued related to exchanges shares (see note 5) 1,380 — Common shares issued for employee share purchase plan 911 6 Common shares outstanding as at February 29, 2020 554,199 $ 2,760 The Company had 554 million voting common shares outstanding, 6 million options to purchase voting common shares, 24 million RSUs and 1 million DSUs outstanding as at March 26, 2020. In addition, 60.5 million common shares are issuable upon conversion in full of the Debentures as described in Note 7. On June 23, 2017, the Company announced that it received acceptance from the Toronto Stock Exchange with respect to a normal course issuer bid to purchase for cancellation up to 31 million common shares of the Company, or approximately 6.4% of the outstanding public float as at May 31, 2017. During fiscal 2018, the Company repurchased approximately 2 million common shares at a cost of approximately $18 million. The Company recorded a reduction of approximately $9 million to capital stock and the amount paid in excess of the per share paid-in capital of the common shares of approximately $9 million was charged to deficit. All common shares repurchased by the Company pursuant to the normal course issuer bid have been canceled. The common share repurchase program expired on June 26, 2018. During fiscal 2019 and fiscal 2020, the Company did not repurchase any common shares. (b) Stock-based Compensation Replacement awards In connection with the Cylance acquisition in fiscal 2019, the Company granted 8,320,130 options and 824,046 RSUs (“Replacement Awards”) to replace unvested Cylance employee stock options and unvested restricted share units, all of which were canceled upon the closing of the transaction. The Company was obligated to replace the unvested Cylance employee equity awards under the merger agreement governing the acquisition. In accordance with ASC Topic 805, Business Combinations , as the Company was obligated to conduct the replacement, these awards are considered to be replacement awards. Exchanges of share options or other share-based payment awards in conjunction with a business combination are modifications of share-based payment awards in accordance with ASC Topic 718, Compensation - Stock Compensation (“ASC 718”). As a result, a portion of the fair-value-based measure of the Replacement Awards is included in measuring the consideration transferred in the Cylance business combination. To determine the portion of the Replacement Awards that is consideration transferred, the Company measured the value of both the Replacement Awards granted by the Company and the historical Cylance awards as of February 21, 2019 in accordance with ASC 718. The portion of the fair-value-based measure of the Replacement Awards that was part of the consideration transferred equaled the portion of the replaced Cylance award that was attributable to pre-combination service. The Company attributed a portion of the Replacement Awards to post-combination service as these awards require post-combination service. The fair value of the rollover consideration was estimated to be $39 million, net of forfeitures, of which $21 million was attributable to pre-acquisition services. The remaining fair value of $18 million is recorded as stock-based compensation over the remaining vesting period subsequent to the acquisition date. As of February 29, 2020, the remaining amount of unrecognized expense for the replacement awards totaled $6 million (February 28, 2019 - $18 million). Stock options The Company recorded a charge to income and a credit to paid-in capital of approximately $5 million in fiscal 2020 (fiscal 2019 - $1 million; fiscal 2018 - $1 million) in relation to stock option-based compensation expense. Stock options previously granted under the Equity Plan generally vest over a period of three years, and are generally exercisable over a period of five years from the grant date. Replacement stock options granted under the Cylance Stock Plan generally vest between three months and four years and are generally exercisable over a period of five to ten years. The Company issues new shares to satisfy stock option exercises. A summary of option activity for fiscal 2020 is shown below: Options Outstanding Number Weighted Average Aggregate Balance as at February 28, 2019 9,014 4.21 Granted during the year — — Exercised during the year (1,189) 2.80 Forfeited/canceled/expired during the year (2,120) 4.47 Balance as at February 29, 2020 5,705 $ 4.41 6.86 $ 8 Vested and expected to vest as at February 29, 2020 5,204 $ 4.35 6.76 $ 7 Exercisable as at February 29, 2020 3,465 $ 4.04 6.15 $ 6 The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value that would have been received by the option holders if all in-the-money options had been exercised on February 29, 2020. The intrinsic value of stock options exercised during fiscal 2020, calculated using the average market price during the year, was approximately $4.30 per share (February 28, 2019 - $2.55; February 28, 2018 - $2.89). A summary of unvested stock options since February 28, 2019 is shown below: Options Outstanding Number Weighted Average Balance as at February 28, 2019 8,458 $ 5.45 Vested during the year (4,317) 5.77 Forfeited during the year (1,901) 5.37 Balance as at February 29, 2020 2,240 $ 4.91 As at February 29, 2020, there was $4 million of unrecognized stock-based compensation expense related to unvested stock options that will be expensed over the vesting period, which, on a weighted average basis, results in a period of approximately 1.56 years. The total fair value of stock options vested during the year ended February 29, 2020 amounted to $25 million (February 28, 2019 - $1 million; February 28, 2018 - $1 million). Cash received from the stock options exercised for the year ended February 29, 2020 amounted to $3 million (February 28, 2019 - $1 million; February 28, 2018 - $4 million). There were no tax deficiencies incurred by the Company related to stock options exercised as at February 29, 2020 (February 28, 2019 - tax deficiency of nil; February 28, 2018 - tax deficiency of nil). During the year ended February 29, 2020, there were no stock options granted (February 28, 2019 - 8,320,130; February 28, 2018 - nil). The weighted average fair value of these grants was calculated using the BSM option pricing model with the following assumptions: February 29, 2020 February 28, 2019 February 28, 2018 Weighted average grant date fair value of stock options granted during the period $ — $3.97 to $7.48 $ — Assumptions: Risk-free interest rates — % 2.50% to 2.56% — % Expected life in years 0 3.91 to 6.16 — % Expected dividend yield — % — % — % Volatility — % 37% to 40% — % The Company has no current expectation of paying cash dividends on its common shares. The risk-free interest rates utilized during the life of the stock options are based on a U.S. Treasury security for an equivalent period. The Company estimates the volatility of its common shares at the date of grant based on a combination of the implied volatility of publicly traded options on its common shares and historical volatility, as the Company believes that this is a reasonable indicator of expected volatility going forward. The expected life of stock options granted under the Equity Plan is based on historical exercise patterns, which the Company believes are representative of future exercise patterns. The expected life of stock options granted under the Cylance Stock Plan is based on the simplified method, as the terms and conditions are different than those previously granted under the Equity Plan. Restricted share units The Company recorded compensation expense with respect to RSUs of approximately $57 million in the year ended February 29, 2020 (February 28, 2019 - $66 million; February 28, 2018 - $48 million). A summary of RSU activity during fiscal 2020 is shown below: RSUs Outstanding Number Weighted Average Aggregate Balance as at February 28, 2019 17,758 9.48 Granted during the year 16,902 7.19 Vested during the year (3,361) 9.90 Forfeited/cancelled during the year (6,797) 9.15 Balance as at February 29, 2020 24,502 $ 7.93 1.65 $ 127 Expected to vest February 29, 2020 22,284 $ 7.88 1.65 $ 115 The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the aggregate closing share price of the Company’s common shares on February 29, 2020 that would have been received by RSU holders if all RSUs had been vested on February 29, 2020). Tax deficiencies incurred by the Company related to the RSUs vested were nil for the year ended February 29, 2020 (February 28, 2019 - tax deficiency of nil; February 28, 2018 - tax deficiency of nil). As at February 29, 2020, there was $104 million of unrecognized compensation expense related to RSUs that will be expensed over the vesting period, which, on a weighted average basis, results in a period of approximately 1.84 years. During the year ended February 29, 2020, there were 16,902,445 RSUs granted, of which 4,182,189 were inducement awards in connection with the Cylance acquisition (February 28, 2019 - 14,245,412, of which 824,046 RSUs were Replacement Awards in connection with the Cylance acquisition, all of which will be settled upon vesting by the issuance of new common shares). During the year ended February 29, 2020, the weighted average fair value for RSUs granted was $7.19 (February 28, 2019 - $9.45; February 28, 2018 - $10.84). During the year ended February 29, 2020, the fair value of RSUs that vested was $33 million (February 28, 2019 - $73 million; February 28, 2018 - $54 million). Inducement awards In the first quarter of fiscal 2020, the Board approved an agreement to grant performance-based equity awards (“Inducement Awards”) to the co-founders of Cylance covering up to 4,182,189 common shares. Up to 25%, 35% and 40% of the Inducement Awards may be earned at the end of the Company’s 2020, 2021 and 2022 fiscal years, respectively, if certain performance conditions are met, and any earned amounts will vest at the end of fiscal 2022. The Company also notes that 75% of the awards eligible to vest in a given year are based on achievement of a billings goal and 25% are based on achievement of a contribution margin goal. In the third quarter of fiscal 2020, 3,122,140 common shares subject to Inducement Awards were forfeited due to the departure of one of the co-founders of Cylance. As at February 29, 2020, there were 1,060,049 common shares subject to Inducement Awards outstanding. The Company recorded compensation expense with respect to the Inducement Awards of approximately $3 million for the year ended February 29, 2020. 2019 Executive Chair Incentive Grant In the first quarter of fiscal 2019, the Board approved an agreement to grant a time-based equity award, a long-term market performance-based equity award and a contingent cash award (together, the “2019 Executive Chair Grant”) to the Company’s Executive Chair and CEO as an incentive to remain as Executive Chair until November 3, 2023. The expense associated with the time-based equity award and market performance-based equity award is included in the compensation expense noted above. The equity and liability components of the agreement are summarized below: Time-based equity award The time-based equity award consists of 5 million time-based RSUs that will vest annually in five equal tranches beginning on November 3, 2019. Market performance-based equity award The market performance-based equity award consists of five tranches, each of 1 million market-condition RSUs that will become earned and vested in increments of 1 million RSUs when the 10-day average closing price of the Company’s common shares on the New York Stock Exchange reaches $16, $17, $18, $19 and $20, respectively. The grant date fair value and the derived service period for each of the market condition equity awards were determined through the use of a Monte Carlo simulation model utilizing Level 2 inputs. Should the target price of an award be reached prior to the derived service date, the remaining unrecognized compensation cost for the award will be accelerated and recorded at that time. Any market-condition RSUs that have not been earned before November 3, 2023 will terminate on such date. Contingent cash award The contingent cash award consists of a cash amount of $90 million that becomes payable should the 10-day average closing price of the Company’s common shares on the New York Stock Exchange reach $30. As the award is triggered by the Company’s share price, it is considered stock-based compensation and accounted for as a share-based liability award, the fair value of which is determined at each reporting period end utilizing an option pricing model using Level 2 inputs and the associated compensation expense for the reporting period recorded. If unearned, the contingent cash award will terminate on November 3, 2023. See also the discussion under “Other contingencies” in Note 11. The Company recorded compensation expense with respect to the contingent cash award of approximately $1 million for the year ended February 29, 2020 (February 28, 2019 - $1 million). The liability recorded in respect to the award was $1 million as at February 29, 2020 and is included within accrued liabilities (February 28, 2019 - $1 million). Deferred share units The Company issued 270,164 DSUs in the year ended February 29, 2020. There were 1.1 million DSUs outstanding as at February 29, 2020 (February 28, 2019 - 0.8 million). The Company had a liability of $6 million in relation to the DSU Plan as at February 29, 2020 (February 28, 2019 - $7 million) included in accrued liabilities. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Feb. 29, 2020 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | EARNINGS (LOSS) PER SHARE The following table sets forth the computation of basic and diluted earnings (loss) per share: For the Years Ended February 29, 2020 February 28, 2019 February 28, 2018 Net income (loss) for basic and diluted earnings (loss) per share available to common shareholders $ (152) $ 93 $ 405 Less: Debentures fair value adjustment (1) (2) (66) (117) — Add: interest expense on Debentures (1) (2) 23 24 — Net income (loss) for diluted earnings (loss) per share available to common shareholders $ (195) $ — $ 405 Weighted average number of shares outstanding (000’s) - basic (3) 553,861 540,477 532,888 Effect of dilutive securities (000’s) Stock-based compensation (4) (5) — 11,308 12,998 Conversion of Debentures (1) (2) 60,500 60,500 — Exchange shares from Cylance acquisition (6) — 4,182 — Weighted average number of shares and assumed conversions (000’s) diluted 614,361 616,467 545,886 Earnings (loss) per share - reported Basic $ (0.27) $ 0.17 $ 0.76 Diluted $ (0.32) $ 0.00 $ 0.74 ______________________________ (1) The Company has not presented the dilutive effect of the Debentures using the if-converted method in the calculation of diluted earnings (loss) per share for the year ended February 28, 2018, as to do so would be antidilutive. See Note 7 for details on the Debentures. (2) The Company has presented the dilutive effect of the Debentures using the if-converted method, assuming conversion at the beginning of the fiscal year for the years ended February 29, 2020 and February 28, 2019. Accordingly, to calculate diluted earnings (loss) per share, the Company adjusted net income (loss) by eliminating the fair value adjustment made to the Debentures and interest expense incurred on the Debentures in the years ended February 29, 2020 and February 28, 2019, and added the number of shares that would have been issued upon conversion to the diluted weighted average number of shares outstanding. See Note 7 for details on the Debentures. (3) Includes approximately 2,802,067 common shares remaining to be issued in equal installments on the next two anniversary dates of the Cylance acquisition, in consideration for the acquisition in the year ended February 28, 2019. There are no service or other requirements associated with the issuance of these shares. (4) The Company has not presented the dilutive effect of in-the-money options and RSUs that will be settled upon vesting by the issuance of new common shares in the calculation of diluted earnings (loss) per share for the year ended February 29, 2020, as to do so would be antidilutive. (5) The Company has presented the dilutive effect of in-the-money options and RSUs that will be settled upon vesting by the issuance of new common shares in the calculation of diluted earnings (loss) per share for the years ended February 28, 2019 and February 28, 2018. As at February 28, 2019, there were 8,985,836 options and 9,300,191 RSUs outstanding that were in-the-money and may have a dilutive effect on earnings (loss) per share in future periods (February 28, 2018 - 790,918 options and 14,068,069 RSUs). (6) The Company has presented the dilutive effect of the exchange shares in connection with the Cylance acquisition completed on February 21, 2019 in the calculation of diluted earnings (loss) per share for the year ended February 28, 2019. The remaining exchange shares are included in the calculation of weighted average number of shares outstanding for the year ended February 29, 2020 as noted in footnote 3 above. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Feb. 29, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | ACCUMULATED OTHER COMPREHENSIVE LOSS The components of accumulated other comprehensive loss are as follows: As at February 29, 2020 February 28, 2019 February 28, 2018 Accumulated net unrealized gains (losses) on available-for-sale debt securities $ — $ 2 $ (7) Accumulated net unrealized losses on derivative instruments designated as cash flow hedges, net of tax (1) — (1) Foreign currency cumulative translation adjustment (9) (7) (1) Change in fair value from instruments-specific credit risk on Debentures (22) (14) — Actuarial losses associated with other post-employment benefit obligations (1) (1) (1) Accumulated other comprehensive loss $ (33) $ (20) $ (10) As a result of the adoption of ASU 2016-01 in fiscal 2019, the Company reclassified $8 million in unrecognized losses on equity securities that had previously been recorded to other comprehensive income (loss), through a cumulative addition to deficit in the consolidated balance sheet as of March 1, 2018. The Company recognized approximately $14 million on the change in fair value from instrument-specific credit risk that had previously been recorded to deficit through a cumulative increase to accumulated other comprehensive loss in the consolidated balance sheet as of March 1, 2018. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Feb. 29, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES (a) Letters of Credit The Company has $42 million in collateralized outstanding letters of credit in support of certain leasing arrangements entered into in the ordinary course of business and in support of patent litigation in certain jurisdictions as of February 29, 2020. See the discussion of restricted cash in Note 3. (b) Contingencies Litigation The Company is involved in litigation in the normal course of its business, both as a defendant and as a plaintiff. The Company is subject to a variety of claims (including claims related to patent infringement, purported class actions and other claims in the normal course of business) and may be subject to additional claims either directly or through indemnities against claims that it provides to certain of its partners and customers. In particular, the industry in which the Company competes has many participants that own, or claim to own, intellectual property, including participants that have been issued patents and may have filed patent applications or may obtain additional patents and proprietary rights for technologies similar to those used by the Company in its products. The Company has received, and may receive in the future, assertions and claims from third parties that the Company’s products infringe on their patents or other intellectual property rights. Litigation has been, and will likely continue to be, necessary to determine the scope, enforceability and validity of third-party proprietary rights or to establish the Company’s proprietary rights. Regardless of whether claims against the Company have merit, those claims could be time-consuming to evaluate and defend, result in costly litigation, divert management’s attention and resources, subject the Company to significant liabilities and could have the other effects that are described in greater detail under Part I, Item 1A “Risk Factors” for the fiscal year ended February 29, 2020, which is included in the Company’s Annual Report on Form 10-K, including the risk factors entitled “Litigation against the Company may result in adverse outcomes” and “The Company could be found to have infringed on the intellectual property rights of others”. Management reviews all of the relevant facts for each claim and applies judgment in evaluating the likelihood and, if applicable, the amount of any potential loss. Where a potential loss is considered probable and the amount is reasonably estimable, provisions for loss are made based on management’s assessment of the likely outcome. Where a range of loss can be reasonably estimated with no best estimate in the range, the Company records the minimum amount in the range. The Company does not provide for claims for which the outcome is not determinable or claims for which the amount of the loss cannot be reasonably estimated. Any settlements or awards under such claims are provided for when reasonably determinable. As of February 29, 2020, there are no material claims outstanding for which the Company has assessed the potential loss as both probable to result and reasonably estimable; therefore, no accrual has been made. Further, there are claims outstanding for which the Company has assessed the potential loss as reasonably probable to result; however, an estimate of the amount of loss cannot reasonably be made. There are many reasons that the Company cannot make these assessments, including, among others, one or more of the following: the early stages of a proceeding does not require the claimant to specifically identify the patent claims that have allegedly been infringed or the products that are alleged to infringe; damages sought are unspecified, unsupportable, unexplained or uncertain; discovery has not been started or is incomplete; the facts that are in dispute are highly complex (e.g., once a patent is identified, the analysis of the patent and a comparison to the activities of the Company is a labour-intensive and highly technical process); the difficulty of assessing novel claims; the parties have not engaged in any meaningful settlement discussions; the possibility that other parties may share in any ultimate liability; and the often slow pace of litigation. Though they do not meet the test for accrual described above, the Company has included the following summaries of certain of its legal proceedings that it believes may be of interest to its investors. Between October and December 2013, several purported class action lawsuits and one individual lawsuit were filed against the Company and certain of its former officers in various jurisdictions in the U.S. and Canada alleging that the Company and certain of its officers made materially false and misleading statements regarding the Company’s financial condition and business prospects and that certain of the Company’s financial statements contain material misstatements. The individual lawsuit was voluntarily dismissed. On March 14, 2014, the four putative U.S. class actions were consolidated in the U.S. District Court for the Southern District of New York, and on May 27, 2014, a consolidated amended class action complaint was filed. On March 13, 2015, the Court issued an order granting the Company’s motion to dismiss. The Court denied the plaintiffs’ motion for reconsideration and for leave to file an amended complaint on November 13, 2015. On August 24, 2016, the U.S. Court of Appeals for the Second Circuit affirmed the District Court order dismissing the complaint, but vacated the order denying leave to amend and remanded to the District Court for further proceedings in connection with the plaintiffs’ request for leave to amend. The Court granted the plaintiffs’ motion for leave to amend on September 13, 2017. On September 29, 2017, the plaintiffs filed a second consolidated amended class action complaint (the “Second Amended Complaint”), which added the Company’s former Chief Legal Officer as a defendant. The Court denied the motion to dismiss the Second Amended Complaint on March 19, 2018. During the first quarter of fiscal 2019, the U.S. class actions lawsuit proceeded to discovery. Fact discovery was completed on January 31, 2020, and expert discovery is scheduled to be completed on June 29, 2020. On August 2, 2019, the Magistrate Judge issued a Report and Recommendation that the Court grant the defendants’ motion for judgment on the pleadings dismissing the claims of additional plaintiffs Cho and Ulug. On September 24, 2019, the District Court Judge accepted the Magistrate Judge’s recommendation and dismissed the claims of Cho and Ulug against all defendants. On October 17, 2019, Cho and Ulug filed a Notice of Appeal. All other proceedings, including plaintiffs’ pending motion for class certification but excluding fact and expert discovery, are currently suspended pending the decision of the Second Circuit Court of Appeals in Arkansas Teachers Retirement System et al. v. Goldman Sachs Group, Inc., et al., which involves an issue relevant to the motion for class certification. On July 23, 2014, the plaintiffs in the putative Ontario class action filed a motion for certification and leave to pursue statutory misrepresentation claims. On November 16, 2015, the Ontario Superior Court of Justice issued an order granting the plaintiffs’ motion for leave to file a statutory claim for misrepresentation. On December 2, 2015, the Company filed a notice of motion seeking leave to appeal this ruling. On January 22, 2016, the Court postponed the hearing on the plaintiffs’ certification motion to an undetermined date after asking the Company to file a motion to dismiss the claims of the U.S. plaintiffs for forum non conveniens. Before that motion was heard, the parties agreed to limit the class to purchasers who reside in Canada or purchased on the Toronto Stock Exchange. On November 15, 2018, the Court denied the Company’s motion for leave to appeal the order granting the plaintiffs leave to file a statutory claim for misrepresentation. On February 5, 2019, the Court entered an order certifying a class comprised persons (a) who purchased BlackBerry common shares between March 28, 2013, and September 20, 2013, and still held at least some of those shares as of September 20, 2013, and (b) who acquired those shares on a Canadian stock exchange or acquired those shares on any other stock exchange and were a resident of Canada when the shares were acquired. Notice of class certification was published on March 6, 2019. The Company filed its Statement of Defence on April 1, 2019, and discovery is proceeding. On February 15, 2017, a putative employment class action was filed against the Company in the Ontario Superior Court of Justice. The Statement of Claim alleges that actions the Company took when certain of its employees decided to accept offers of employment from Ford Motor Company of Canada amounted to a wrongful termination of the employees’ employment with the Company. The claim seeks (i) an unspecified quantum of statutory, contractual, or common law termination entitlements; (ii) punitive or breach of duty of good faith damages of CAD$20,000,000, or such other amount as the Court finds appropriate, (iii) pre- and post- judgment interest, (iv) attorneys’ fees and costs, and (v) such other relief as the Court deems just. The Court granted the plaintiffs’ motion to certify the class action on May 27, 2019. The Company commenced a motion for leave to appeal the certification order on June 11, 2019. The Court denied the motion for leave to appeal on September 17, 2019. On February 4, 2019, a putative employment class action and California Private Attorney General Act claim was filed against the Company in the San Joaquin County Superior Court alleging the Company (i) failed to provide itemized wage statements in violation of California Labor Code Section 226(a); and (ii) failed to pay all wages due at termination in violation of California Labor Code Section 201. The complaint seeks statutory penalties, injunctive relief, interest, costs, and attorneys’ fees. The Company filed its answer denying the allegations in the complaint on March 18, 2019, and discovery is proceeding. On August 22, 2019, the Company filed a Motion for Summary Adjudication of the named plaintiff’s wage statement claims. The Court took the motion under submission following oral argument on November 13, 2019, and the motion remains pending. The Court denied the motion on January 21, 2020. The parties have reached a tentative settlement and will provide notice of the settlement to the class after the Court enters its order preliminarily approving the settlement. Other contingencies In the first quarter of fiscal 2019, the Board approved the 2019 Executive Chair Grant. As part of the agreement, the Company’s Executive Chair and CEO is entitled to receive a contingent performance-based cash award in the amount of $90 million that will become earned and payable should the 10-day average closing price of the Company’s common shares on the New York Stock Exchange reach $30 before November 3, 2023. As the award is triggered by the Company’s share price, it is considered stock-based compensation and accounted for as a share-based liability award. As at February 29, 2020, the liability recorded in association with this award is approximately $1 million. During the year ended February 29, 2020, the Company received $10 million in funds from claims filed with the Ministry of Innovation, Science and Economic Development Canada relating to its Strategic Innovation Fund program’s investment in BlackBerry QNX. A portion of this amount may be repayable in the future under certain circumstances if certain terms and conditions are not met by the Company, which is not probable at this time. (c) Arbitration awards and settlements, net Panasonic settlement agreement In fiscal 2019, the Company and Panasonic Corporation entered into a settlement agreement whereby the Company received approximately $12 million in connection with previously purchased components utilized by the legacy handheld devices business. This amount, net of legal costs of approximately $3 million, was recorded within arbitration awards and settlements, net on the consolidated statements of operations in the fourth quarter of fiscal 2019. Qualcomm arbitration award On April 20, 2016, the Company and Qualcomm Incorporated (“Qualcomm”) entered into an agreement to arbitrate a dispute regarding whether Qualcomm’s agreement to cap certain royalties applied to payments made by the Company under a license between the parties. Following a joint stipulation by the parties, the arbitration panel issued a final award on May 26, 2017 providing for the payment by Qualcomm to the Company of a total amount of $940 million including interest and attorneys’ fees, which was net of $22 million in certain royalties owed by the Company to Qualcomm for calendar 2016 and the first quarter of calendar 2017 previously recorded within accrued liabilities on the consolidated balance sheets. Approximately $815 million of the arbitration award represents the return of royalty overpayments. The Company also recorded on the consolidated statements of operations recoveries of legal expenses of approximately $8 million included in selling, marketing and administration, and $139 million of interest income within investment income, net, for a total gain associated with the award of $962 million. Nokia arbitration decision On April 28, 2016, Nokia Corporation (“Nokia”) filed a Request for Arbitration with the International Chamber of Commerce International Court of Arbitration. The dispute related to whether certain payments due under a patent agreement between the parties were in fact owed under the terms of the agreement. The arbitration panel issued a decision, finding in favour of Nokia. In the third quarter of fiscal 2018, the Company recorded $148 million in charges associated with the arbitration, consisting of $132 million within arbitration awards and settlements, net and $16 million in interest expense within investment income, net on the consolidated statements of operations. (d) Concentrations in Certain Areas of the Company’s Business The Company attempts to ensure that most components essential to the Company’s business are generally available from multiple sources; however, certain components are currently obtained from limited sources within a competitive market, which subjects the Company to supply, availability and pricing risks. The Company has also entered into various agreements for the supply of components, and the manufacturing of its products; however, there can be no guarantee that the Company will be able to extend or renew these agreements on similar terms, or at all. Therefore, the Company remains subject to risks of supply shortages. (e) Indemnifications The Company enters into certain agreements that contain indemnification provisions under which the Company could be subject to costs and damages, including in the event of an infringement claim against the Company or an indemnified third party. Such intellectual property infringement indemnification clauses are generally not subject to any dollar limits and remain in effect for the term of the Company’s agreements. To date, the Company has not encountered material costs as a result of such indemnifications. The Company has entered into indemnification agreements with its current and former directors and executive officers. Under these agreements, the Company agreed, subject to applicable law, to indemnify its current and former directors and executive officers against all costs, charges and expenses reasonably incurred by such individuals in respect of any civil, criminal or administrative action that could arise by reason of their status as directors or officers. The Company maintains liability insurance coverage for the benefit of the Company, and its current and former directors and executive officers. The Company has not encountered material costs as a result of such indemnifications in fiscal 2020. See the Company’s Management Information Circular for its 2019 annual meeting of shareholders for additional information regarding the Company’s indemnification agreements with its current and former directors and executive officers. |
Leases
Leases | 12 Months Ended |
Feb. 29, 2020 | |
Leases [Abstract] | |
Leases | LEASES The Company has operating and finance leases primarily for corporate offices, research and development facilities, data centers and certain equipment. The Company’s leases have remaining lease terms of between one year and eight years, some of which may include options to extend the lease for up to 10 years, and some of which may include options to terminate the lease within one month. The components of lease expense were as follows: For the Year Ended February 29, 2020 Operating lease cost, included in selling, marketing and administration $ 33 Finance lease cost Amortization of ROU assets, included in amortization $ 2 Interest on lease liabilities, included in investment income, net — Total finance lease cost $ 2 Supplemental cash flow information related to leases was as follows: For the Year Ended February 29, 2020 Cash paid for amounts included in the measurement of lease liabilities: Cash used in operating activities related to operating lease payments $ 40 Cash used in financing activities related to finance lease payments 2 During the year ended February 29, 2020, the Company entered into $1 million in lease obligations and recognized a corresponding ROU asset of $1 million. During the year ended February 29, 2020, the Company incurred losses of $8 million on LLA impairment of ROU assets (cost of $18 million, accumulated amortization of $10 million, and a net book value of approximately $8 million). The Company also had sublease income of $2 million and incurred $2 million in short-term lease costs during the year ended February 29, 2020. Supplemental consolidated balance sheet information related to leases was as follows: As at February 29, 2020 March 1, 2019 (adoption) Operating leases Operating lease assets Operating lease ROU assets $ 124 $ 161 Operating lease liabilities Accrued liabilities $ 31 $ 36 Operating lease liabilities 120 153 Total operating lease liabilities $ 151 $ 189 Finance leases Finance lease assets Property, plant and equipment $ 5 $ 8 Accumulated amortization (4) (5) Total finance lease assets $ 1 $ 3 Finance lease liabilities Accrued liabilities $ 1 $ 2 Other long-term liabilities — 1 Total finance lease liabilities $ 1 $ 3 As at February 29, 2020 Weighted average remaining lease term Operating leases 5.5 years Finance leases 1.3 years Weighted average discount rate Operating lease 3.6 % Finance leases 2.2 % Maturities of undiscounted lease liabilities were as follows: As at February 29, 2020 Operating Leases Finance Leases Fiscal year 2021 $ 36 $ 1 Fiscal year 2022 34 — Fiscal year 2023 28 — Fiscal year 2024 22 — Fiscal year 2025 17 — Thereafter 29 — Total future minimum lease payments 166 1 Less: Imputed interest (15) — Total $ 151 $ 1 Supplemental Information for Comparative Periods As of February 28, 2019, prior to the adoption of ASC 842, future minimum annual lease payments related to operating leases were as follows: 2020 $ 36 2021 28 2022 27 2023 27 2024 20 Thereafter 47 $ 185 For the year ended February 28, 2019, the Company incurred rental expense of $31 million (February 28, 2018 - $32 million). |
Revenue and Segment Disclosures
Revenue and Segment Disclosures | 12 Months Ended |
Feb. 29, 2020 | |
Segment Reporting [Abstract] | |
Revenue and Segment Disclosures | REVENUE AND SEGMENT DISCLOSURES Revenue The Company disaggregates revenue from contracts with customers based on geographical regions, timing of revenue recognition, and the major product and service types as described in Note 1. The Company’s revenue, classified by major geographic region in which the Company’s customers are located, was as follows: For the Years Ended February 29, 2020 (1) February 28, 2019 (1) February 28, 2018 (2) North America (3) 743 71.4 % 599 66.2 % 540 58.0 % Europe, Middle East and Africa 221 21.3 % 222 24.6 % 278 29.8 % Other regions 76 7.3 % 83 9.2 % 114 12.2 % Total $ 1,040 100.0 % $ 904 100.0 % $ 932 100.0 % ______________________________ ( 1) As reported under ASC 606. (2) Comparative information has not been restated and continues to be reported under the accounting standards in effect for the year ended February 28, 2018. (3) North America includes all revenue from the Company’s intellectual property arrangements, due to the global applicability of the patent portfolio and licensing arrangements thereof. Total revenue, classified by product and service type (see Note 1), was as follows: For the Years Ended February 29, 2020 (1) February 28, 2019 (1) February 28, 2018 (2) IoT $ 540 $ 554 $ 551 BlackBerry Cylance 151 5 — Licensing 328 286 196 Other 21 59 185 Total $ 1,040 $ 904 $ 932 ______________________________ (1) As reported under ASC 606. (2) Comparative information has not been restated and continues to be reported under the accounting standards in effect for the year ended February 28, 2018. Revenue, classified by timing of recognition, was as follows: For the Year Ended February 29, 2020 February 28, 2019 Products and services transferred over time $ 512 $ 488 Products and services transferred at a point in time 528 416 Total $ 1,040 $ 904 Revenue contract balances The following table sets forth the activity in the Company’s revenue contract balances for the fiscal year ended February 29, 2020: Accounts Receivable Deferred Revenue Deferred Commissions Opening balance as at February 28, 2019, as corrected $ 252 $ 389 $ 23 Increases due to invoicing of new or existing contracts, associated contract acquisition costs, or other 761 585 37 Decrease due to payment, fulfillment of performance obligations, or other (746) (601) (32) Increase (decrease), net 15 (16) 5 Closing balance as at February 29, 2020 $ 267 $ 373 $ 28 Transaction price allocated to the remaining performance obligations The table below discloses the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied as at February 29, 2020 and the time frame in which the Company expects to recognize this revenue. The disclosure includes estimates of variable consideration, except when the variable consideration is a sales-based or usage-based royalty promised in exchange for a license of intellectual property. As at February 29, 2020 Less than 12 Months 12 to 24 Months Thereafter Total Remaining performance obligations $ 279 $ 101 $ 43 $ 423 Revenue recognized for performance obligations satisfied in prior periods For the fiscal year ended February 29, 2020, $1 million in revenue was recognized relating to performance obligations satisfied in a prior period (fiscal year ended February 28, 2019 - $11 million, in revenue recognized relating to the legacy handheld devices business). Segment Disclosures The Company reports segment information based on the “management” approach. The management approach designates the internal reporting used by the Chief Operating Decision Maker (“CODM”) for making decisions and assessing performance as a source of the Company’s reportable operating segments. The CODM, who is the Executive Chair and CEO, reviews financial information, makes decisions and assesses the performance of the Company as a single operating segment. Property, plant and equipment, intangible assets, operating lease ROU assets and goodwill, classified by geographic segments in which the Company’s assets are located, were as follows: As at February 29, 2020 February 28, 2019 Property, Plant and Equipment, Intangible Assets, Operating Lease ROU Assets and Goodwill Total Assets Property, Plant and Equipment, Intangible Assets and Goodwill Total Assets Canada $ 374 $ 657 $ 396 $ 667 United States 2,132 3,071 2,178 3,099 Other 40 160 42 202 $ 2,546 $ 3,888 $ 2,616 $ 3,968 Information About Major Customers There was one customer that comprised 13% of the Company’s revenue in fiscal 2020 (fiscal 2019 - one customer that comprised more than 10%; fiscal 2018 - no customers that comprised more than 10%). |
Cash Flow and Additional Inform
Cash Flow and Additional Information | 12 Months Ended |
Feb. 29, 2020 | |
Supplemental Cash Flow Information [Abstract] | |
Cash Flow and Additional Information | CASH FLOW AND ADDITIONAL INFORMATION (a) Certain consolidated statements of cash flow information related to interest and income taxes paid is summarized as follows: For the Years Ended February 29, 2020 February 28, 2019 February 28, 2018 Interest paid during the year $ 23 $ 24 $ 39 Income taxes paid during the year 8 6 6 Income tax refunds received during the year 9 15 7 (b) Additional Information Advertising expense, which includes media, agency and promotional expenses totaling $39 million (February 28, 2019 - $22 million; February 28, 2018 - $23 million) is included in selling, marketing and administration expenses for the fiscal year ended February 29, 2020. Selling, marketing and administration expenses for the fiscal year ended February 29, 2020 included nil with respect to foreign exchange gain or losses, net of foreign exchange hedging (February 28, 2019 - gain of $2 million; February 28, 2018 - losses of nil). Foreign exchange The Company is exposed to foreign exchange risk as a result of transactions in currencies other than its functional currency, the U.S. dollar. The majority of the Company’s revenue in fiscal 2020 was transacted in U.S. dollars. Portions of the revenue were denominated in Canadian dollars, euros and British pounds. Other expenses, consisting mainly of salaries and certain other operating costs, were incurred primarily in Canadian dollars, but were also incurred in U.S. dollars, euros and British pounds. At February 29, 2020, approximately 12% of cash and cash equivalents, 17% of accounts receivable and 17% of accounts payable were denominated in foreign currencies (February 28, 2019 – 9%, 29% and 4%, respectively). These foreign currencies primarily include the Canadian dollar, euro and British pound. As part of its risk management strategy, the Company maintains net monetary asset and/or liability balances in foreign currencies and engages in foreign currency hedging activities using derivative financial instruments, including currency forward contracts and currency options. The Company does not use derivative instruments for speculative purposes. Interest rate risk Cash and cash equivalents and investments are invested in certain instruments of varying maturities. Consequently, the Company is exposed to interest rate risk as a result of holding investments of varying maturities. The fair value of investments, as well as the investment income derived from the investment portfolio, will fluctuate with changes in prevailing interest rates. The Company has also issued the Debentures as described in Note 7 with a fixed 3.75% interest rate. The fair value of the Debentures will fluctuate with changes in prevailing interest rates. Consequently, the Company is exposed to interest rate risk as a result of the Debentures. The Company does not currently utilize interest rate derivative instruments to hedge its investment portfolio. Credit risk The Company is exposed to market and credit risk on its investment portfolio. The Company reduces this risk by investing in liquid, investment-grade securities and by limiting exposure to any one entity or group of related entities. As at February 29, 2020, no single issuer represented more than 8% of the total cash, cash equivalents and investments (February 28, 2019 - no single issuer represented more than 16% of the total cash, cash equivalents and investments), representing cash balances at one of the Company’s banking counterparties. The Company maintains Credit Support Annexes (“CSAs”) with several of its counterparties. These CSAs require the outstanding net position of all contracts be made whole by the paying or receiving of collateral to or from the counterparties on a daily basis, subject to exposure and transfer thresholds. As at February 29, 2020, the Company had $1 million in collateral posted with counterparties (February 28, 2019 - nil collateral posted or held). Liquidity risk |
Blackberry Limited and Summar_2
Blackberry Limited and Summary of Significant Accounting Policies and Critical Accounting Estimates (Policies) | 12 Months Ended |
Feb. 29, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation and preparation | Basis of Presentation and Preparation The consolidated financial statements include the accounts of all subsidiaries of the Company with intercompany transactions and balances eliminated on consolidation. All of the Company’s subsidiaries are wholly owned. These consolidated financial statements have been prepared by management in accordance with United States generally accepted accounting principles (“U.S. GAAP”) on a basis consistent for all periods presented, except as described in Note 2. Certain of the comparative figures have been reclassified to conform to the current year’s presentation. The Company operates as a single reportable segment. For additional information concerning the Company’s segment reporting, see Note 13. |
Correction of previously issues financial statements | Correction of Previously Issued Financial Statements Accounts receivable, contract assets and contract liabilities associated with certain contracts with customers accounted for under Accounting Standard Codification 606 (“ASC 606”) During fiscal 2020, the Company corrected an error associated with the presentation of accounts receivable and associated deferred revenues for certain contracts with customers on the comparative February 28, 2019 consolidated balance sheet. This correction had no impact to the deficit or the consolidated statement of operations for any period and impacts only the consolidated balance sheet as at February 28, 2019. Under ASC 606, a receivable is recorded when it is unconditional; that is, the only thing required for its collection is the passage of time. If a receivable is not unconditional, the amount is treated as a contract asset and netted against any contract liabilities, such as deferred revenue, associated with the same contract. Most of the Company’s contracts for its IoT software and services contain customer termination provisions, but do not have refund rights for the unused portion of any contract. As, contractually, all amounts are owed to the Company regardless of the customer’s actions, the Company has determined that the associated accounts receivable are unconditional, should not have been treated as contract assets and would therefore not be netted against the associated deferred revenue. The Company continues to net receivables that are not unconditional against the associated deferred revenue, such as pre-billed professional services or contracts with customers that have refund provisions. As a result of the correction, the balances in the Company’s consolidated balance sheet as at February 28, 2019 have been reclassified in the consolidated balance sheet as at February 29, 2020 as follows: As at Correction As at Assets Accounts receivable, net $ 194 $ 39 $ 233 Liabilities Deferred revenue, current $ 214 $ 39 $ 253 |
Use of estimates | Use of estimates The preparation of the consolidated financial statements requires management to make estimates and assumptions with respect to the reported amounts of assets, liabilities, revenue and expenses and the disclosure of contingent assets and liabilities. Significant areas requiring the use of management estimates relate to revenue-related estimates including variable consideration, standalone selling price (“SSP”), estimated customer life, if control of the license has transferred, value of non-cash consideration, right of return and customer incentive commitments, fair value of reporting units in relation to potential goodwill impairment, fair value of the Debentures, fair value of long-lived assets in relation to potential impairment, useful lives of property, plant and equipment and intangible assets, fair values of assets acquired and liabilities assumed in business combinations, provision for income taxes, realization of deferred income tax assets and the related components of the valuation allowance, allowance for doubtful accounts, incremental borrowing rate in determining the present value of lease liabilities and the determination of reserves for various litigation claims. Actual results could differ from these estimates, which were based upon circumstances that existed as of the date of the consolidated financial statements, February 29, 2020. Subsequent to this date, there have been significant changes to the global economic situation and to public securities markets as a consequence of the COVID-19 pandemic. It is reasonably possible that this could cause changes to estimates as a result of the financial circumstances of the markets in which the Company operates, the price of the Company’s publicly traded equity in comparison to the Company’s carrying value, and the health of the global economy. Such changes to estimates could potentially result in impacts that would be material to the consolidated financial statements, particularly with respect to the fair value of the Company’s reporting units in relation to potential goodwill impairment and the fair value of long-lived assets in relation to potential impairment. |
Foreign currency translation | Foreign currency translation The U.S. dollar is the functional and reporting currency of the Company and substantially all of the Company’s subsidiaries. Foreign currency denominated assets and liabilities of the Company and its U.S. dollar functional currency subsidiaries are translated into U.S. dollars. Accordingly, monetary assets and liabilities are translated using the exchange rates in effect as at the consolidated balance sheet dates, and revenue and expenses are translated at the rates of exchange prevailing when the transactions occurred. Remeasurement adjustments are included in income. Non-monetary assets and liabilities are translated at historical exchange rates. Foreign currency denominated assets and liabilities of the Company’s non-U.S. dollar functional currency subsidiaries are translated into U.S. dollars at the exchange rates in effect as at the consolidated balance sheet dates. Revenue and expenses are translated using daily exchange rates. Exchange gains or losses arising from translation of foreign currency denominated assets and liabilities are included as a currency translation adjustment within accumulated other comprehensive income (loss) (“AOCI”). |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents consist of balances with banks and liquid investments with maturities of three months or less at the date of acquisition. |
Accounts receivable, net | Accounts receivable, net The accounts receivable balance reflects invoiced and accrued revenue and is presented net of an allowance for doubtful accounts. The allowance for doubtful accounts reflects estimates of probable losses in the accounts receivable balance. The Company expects the majority of its accounts receivable balances to continue to come from large customers as it sells the majority of its software products and services through resellers and network carriers rather than directly. |
Investments | Investments The Company’s cash equivalents and investments, other than publicly issued equity securities and private equity investments without readily determinable fair value, consist of money market and other debt securities, which are classified as available-for-sale for accounting purposes and are carried at fair value. Unrealized gains and losses, net of related income taxes, are recorded in AOCI until such investments mature or are sold. The Company uses the specific identification method of determining the cost basis in computing realized gains or losses on available-for-sale investments, which are recorded in investment income. In the event of a decline in value that is other-than-temporary, the investment is written down to fair value with a charge to income. The Company does not exercise significant influence with respect to any of these investments. Publicly issued equity securities are recorded at fair value and revalued at each reporting period with changes in fair value recorded through investment income. The Company elects to record private equity investments without readily determinable fair value at cost minus impairment, and adjusted for any changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer. The Company reassesses each reporting period that its private equity investments without readily determinable fair value continue to qualify for this treatment. Investments with maturities at the time of purchase of three one one The Company assesses individual investments that are in an unrealized loss position to determine whether the unrealized loss is other-than-temporary. The Company makes this assessment by considering available evidence, including changes in general market conditions, specific industry and individual company data, the length of time and the extent to which the fair value has been less than cost, the financial condition, the near-term prospects of the individual investment and the Company’s intent and ability to hold the investment. In the event that a decline in the fair value of an investment occurs and that decline in value is considered to be other-than-temporary, an impairment charge is recorded in investment income equal to the difference between the cost basis and the fair value of the individual investment as at the consolidated balance sheet date of the reporting period for which the assessment was made. The fair value of the investment then becomes the new cost basis of the investment. If a debt security’s market value is below its amortized cost and either the Company intends to sell the security or it is more likely than not that the Company will be required to sell the security before its anticipated recovery, the Company records an other-than-temporary impairment charge to investment income for the entire amount of the impairment. For other-than-temporary impairments on debt securities that the Company does not intend to sell and it is not more likely than not that the entity will be required to sell the security before its anticipated recovery, the Company would separate the other-than-temporary impairment into the amount representing the credit loss and the amount related to all other factors. The Company would record the other-than-temporary impairment related to the credit loss as a charge to investment income, and the remaining other-than-temporary impairment would be recorded as a component of AOCI. |
Derivative financial instruments | Derivative financial instruments On March 1, 2019, the Company adopted Accounting Standards Update (“ASU”) 2017-12 related to accounting for hedging activities. The Company uses derivative financial instruments, including forward contracts and options, to hedge certain foreign currency exposures. The Company does not use derivative financial instruments for speculative purposes. The Company records all derivative instruments at fair value on the consolidated balance sheets. The fair value of these instruments is calculated based on notional and exercise values, transaction rates, market quoted currency spot rates, forward points, volatilities and interest rate yield curves. The accounting for changes in the fair value of a derivative depends on the intended use of the derivative instrument and the resulting designation. For derivative instruments designated as cash flow hedges, the effective portion of the derivative’s gain or loss is initially reported as a component of AOCI, net of tax, and subsequently reclassified into income in the same period or periods in which the hedged item affects income. The ineffective portion of the derivative’s gain or loss is recognized in current income. In order for the Company to receive hedge accounting treatment, the cash flow hedge must be highly effective in offsetting changes in the fair value of the hedged item and the relationship between the hedging instrument and the associated hedged item must be formally documented at the inception of the hedge relationship. Hedge effectiveness is formally assessed, both at hedge inception and on an ongoing basis, to determine whether the derivatives used in hedging transactions are highly effective in offsetting changes in the value of the hedged items and whether they are expected to continue to be highly effective in future periods. The Company formally documents relationships between hedging instruments and associated hedged items. This documentation includes: identification of the specific foreign currency asset, liability or forecasted transaction being hedged; the nature of the risk being hedged; the hedge objective; and the method of assessing hedge effectiveness. If an anticipated transaction is deemed no longer likely to occur, the corresponding derivative instrument is de-designated as a hedge and any associated unrealized gains and losses in AOCI are recognized in income at that time. Any future changes in the fair value of the instrument are recognized in current income. For any derivative instruments that do not meet the requirements for hedge accounting, or for any derivative instruments for which hedge accounting is not elected, the changes in fair value of the instruments are recognized in income in the current period and will generally offset the changes in the U.S. dollar value of the associated asset, liability or forecasted transaction. |
Property, plant and equipment, net | Property, plant and equipment, net Property, plant and equipment are stated at cost, less accumulated amortization. Amortization is provided using the following rates and methods: Buildings, leasehold improvements and other Straight-line over terms between 5 and 40 years BlackBerry operations and other information technology Straight-line over terms between 3 and 5 years Manufacturing, repair and research and development equipment Straight-line over terms between 1 and 5 years Furniture and fixtures Declining balance at 20% per annum |
Goodwill | Goodwill Goodwill represents the excess of the acquisition price in a business combination over the fair value of identifiable net assets acquired. Goodwill is allocated at the date of the business combination. Goodwill is not amortized but is tested for impairment annually on December 31 or more frequently if events or changes in circumstances indicate the asset may be impaired. These events and circumstances may include a significant change in legal factors or in the business climate, a significant decline in the Company’s share price, an adverse action or assessment by a regulator, unanticipated competition, a loss of key personnel, significant disposal activity and the testing of recoverability for a significant asset group. The Company’s annual impairment test was carried out in two steps. In the first step, the carrying amount of the reporting unit, including goodwill, was compared with its fair value. The estimated fair value was determined utilizing multiple approaches based on the nature of the reporting units being valued. In its analysis, the Company utilized multiple valuation techniques, including the income approach, discounted future cash flows, the market-based approach, and the asset value approach. The analysis requires significant judgment, including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term rate of revenue growth for our reporting units, estimation of the useful life over which cash flows will occur, terminal growth rate, profitability measures, and determination of the discount rates for the reporting units. The carrying amount of the Company’s assets was assigned to reporting units using reasonable methodologies based on the asset type. When the carrying amount of a reporting unit exceeds its fair value, goodwill of the reporting unit is considered to be impaired and the second step is necessary. Different judgments could yield different results. In fiscal 2020, the Company disaggregated one reporting unit and goodwill was assigned to the disaggregated reporting units based upon the relative fair value allocation approach. The completion of step one of the goodwill impairment test provided indications of impairment in certain reporting units, necessitating step two. In the second step, the implied fair value of the reporting unit’s goodwill is compared with its carrying amount to measure the amount of the impairment loss, if any. The second step involves significant judgment in the selection of assumptions necessary to arrive at an implied fair value of goodwill. Different judgments could yield different results. Using the impaired reporting units’ fair value determined in step one as the acquisition prices in hypothetical acquisitions of the reporting units, the implied fair values of goodwill were calculated as the residual amount of the acquisition price after allocations made to the fair values of net assets, including working capital, property, plant and equipment and both recognized and unrecognized intangible assets. |
Intangible assets | Intangible assets Intangible assets with definite lives are stated at cost, less accumulated amortization. Amortization is provided on a straight-line basis over the following terms: Acquired technology Between 3 and 10 years Intellectual property Between 1 and 17 years Other acquired intangibles Between 2 and 10 years |
Impairment of long-lived assets | Impairment of long-lived assets The Company reviews long-lived assets (“LLA”) such as property, plant and equipment and intangible assets with finite useful lives for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset or asset group may not be recoverable. These events and circumstances may include significant decreases in the market price of an asset or asset group, significant changes in the extent or manner in which an asset or asset group is being used by the Company or in its physical condition, a significant change in legal factors or in the business climate, a history or forecast of future operating or cash flow losses, significant disposal activity, a significant decline in the Company’s share price, a significant decline in revenue or adverse changes in the economic environment. The LLA impairment test requires the Company to identify its asset groups and test impairment of each asset group separately. Determining the Company’s asset groups and related primary assets requires significant judgment by management. Different judgments could yield different results. The Company’s determination of its asset groups, its primary asset and its remaining useful life, and estimated cash flows are significant factors in assessing the recoverability of the Company’s assets for the purposes of LLA impairment testing. The Company’s share price can be affected by, among other things, changes in industry or market conditions, including the effect of competition, changes in the Company’s results of operations, changes in the Company’s forecasts or market expectations relating to future results, and the Company’s strategic initiatives and the market’s assessment of any such factors. When indicators of impairment exist, LLA impairment is tested using a two-step process. The Company performs a cash flow recoverability test as the first step, which involves comparing the asset group’s estimated undiscounted future cash flows to the carrying amount of its net assets. If the net cash flows of the asset group exceed the carrying amount of its net assets, LLA are not considered to be impaired. If the carrying amount exceeds the net cash flows, there is an indication of potential impairment and the second step of the LLA impairment test is performed to measure the impairment amount. The second step involves determining the fair value of the asset group. Fair values are determined using valuation techniques that are in accordance with U.S. GAAP, including the market approach, income approach and cost approach. If the carrying amount of the asset group’s net assets exceeds the fair value of the Company, then the excess represents the maximum amount of potential impairment that will be allocated to the asset group, with the limitation that the carrying value of each separable asset cannot be reduced to a value lower than its individual fair value. The total impairment amount allocated is recognized as a non-cash impairment loss. |
Business acquisitions | Business acquisitions The Company accounts for its acquisitions using the acquisition method whereby identifiable assets acquired and liabilities assumed are measured at their fair values as of the date of acquisition. The excess of the acquisition price over such fair value, if any, is recorded as goodwill, which is not expected to be deductible for tax purposes. The Company includes the operating results of each acquired business in the consolidated financial statements from the date of acquisition. |
Royalties | RoyaltiesThe Company recognizes its liability for royalties in accordance with the terms of existing license agreements. Where license agreements are not yet finalized, the Company recognizes its current estimates of the obligation in accrued liabilities in the consolidated financial statements. When the license agreements are subsequently finalized, the estimate is revised accordingly. Management’s estimates of royalty rates are based on the Company’s historical licensing activities, royalty payment experience, and forward-looking expectations. |
Convertible debentures | Convertible debentures The Company elected to measure its outstanding convertible debentures (collectively, the “Debentures” as defined in Note 7) at fair value in accordance with the fair value option. Each period, the fair value of the Debentures is recalculated and resulting gains and losses from the change in fair value of the Debentures associated with non-credit components are recognized in income, while the change in fair value associated with credit components is recognized in AOCI. The fair value of the Debentures has been determined using the significant inputs of principal value, interest rate spreads and curves, embedded call option prices, observable trades of the Debentures, the market price and volatility of the Company’s listed common shares and the Company’s implicit credit spread. |
Leases | Leases On March 1, 2019, the Company adopted the new standard on leases, Accounting Standards Codification 842 (“ASC 842”). Operating lease right-of-use (“ROU”) assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. As most of the Company’s leases do not provide an implicit discount rate, the Company primarily uses its incremental borrowing rate, based on the information available at the commencement date of the lease, in determining the present value of future payments. The Company’s incremental borrowing rate requires significant judgment and is determined based on the rate of interest that the Company would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term in a similar economic environment. The operating lease ROU asset includes any lease payments made, lease incentives and initial direct costs incurred. The lease terms include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. In some cases, the Company has index-based variable lease payments for which an estimated rate is applied to the initial lease payment to determine future lease payment amounts. The Company has building, car and data center lease agreements with lease and non-lease components that are accounted for separately. For lease terms of 12 months or less on commencement date, the Company does not apply the ASC 842 recognition requirements and recognizes the lease payments as lease cost on a straight-line basis over the lease term. Prior to the adoption of ASC 842, the Company classified leases as either capital or operating leases. Capital leases were capitalized on the consolidated balance sheet and reported on the consolidated statement of operations. Operating leases were considered off-balance sheet transactions and expensed as incurred. |
Revenue recognition | Revenue recognition On March 1, 2018, the Company adopted ASC 606 and all related amendments using the modified retrospective method. The Company recognizes revenue, when control of the promised products or services are transferred to customers, in an amount that reflects the consideration that the Company expects to receive in exchange for those products and services. Revenue is recognized through the application of the following steps: (i) identification of the contract, or contracts, with a customer; (ii) identification of the performance obligations in the contract; (iii) determination of the transaction price; (iv) allocation of the transaction price to the performance obligations in the contract; and (v) recognition of revenue when (or as) the Company satisfies a performance obligation. A contract exists with a customer when both parties have approved the contract, commitments to performance and rights of each party (including payment terms) are identified, the contract has commercial substance and collection of substantially all consideration is probable for goods and services that are transferred. Performance obligations promised in a contract are identified based on the goods and services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the good or service either on its own or together with other available resources, and are distinct in the context of the contract, whereby the transfer of the good or service is separately identifiable from other promises in the contract. If these criteria are not met, the promised goods and services are accounted for as a combined performance obligation. The transaction price is determined based on the consideration the Company expects to be entitled to in exchange for transferring promised goods and services to the customer, excluding amounts collected on behalf of third parties such as sales taxes. Determining the transaction price requires significant judgment. To the extent the transaction price includes variable consideration, the Company estimates the amount of variable consideration that should be included in the transaction price utilizing either the expected value method or the most likely amount method depending on the nature of the variable consideration. Non-cash consideration received is measured at fair value at contract inception. The estimated fair value is determined utilizing multiple valuation techniques, including the discounted future cash flows and the market-based approach. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative SSP. The Company’s method for allocation of consideration to be received and its method of estimation of SSP are described below under “Significant judgments”. For each of the Company’s major categories of revenue, the following paragraphs describe the applicable specific revenue recognition policy, and when the Company satisfies its performance obligations. Nature of products and services Internet of Things IoT includes revenue from the Company’s suite of security software products and services designed to secure endpoint communications for the IoT, including BlackBerry Unified Endpoint Manager (“UEM”) and BlackBerry Dynamics, among other products and applications, as well as revenue from the sale of the Company’s AtHoc Alert secure networked crisis communications solution, its SecuSUITE secure voice and text solution, and the technologies offered by BlackBerry QNX. The Company generates software license revenue from both term subscription and perpetual license contracts, both of which are commonly bundled with support, maintenance and professional services. If the licensed software in a contract requires access to the Company’s proprietary secure network infrastructure in order to function, revenue from term subscription contracts is recognized over time, ratably over the term, and revenue from perpetual license contracts is recognized over time, ratably over the expected customer life, which in most cases the Company has estimated to be four BlackBerry QNX software license revenue from both term subscription and perpetual contracts is recognized at a point in time when the software is made available to the customer for use, as the software has standalone functionality and the license is distinct in the context of the contract. The licenses for certain software embedded into hardware such as automotive infotainment systems and advanced driver-assistance systems are sold as a sales-based royalty where intellectual property is the predominant item to which the royalty relates, and are recognized based on actual volumes and underlying sales by the customer of the hardware with the embedded software except in cases where the customer makes a non-refundable prepayment related to its future royalties, in which case consideration is fixed and recognized immediately. Revenue from technical support is recognized over the support period. Revenue from professional services is recognized as the customer simultaneously receives and consumes the benefits provided by the Company’s performance as the services are provided. This can be on a proportional performance basis, or over the term of the contract. Revenue from software maintenance services is recognized over the length of the maintenance period, with an average term of one BlackBerry Cylance BlackBerry Cylance includes revenue from the Company’s artificial intelligence and machine learning-based platform consisting of CylancePROTECT, CylanceOPTICS, CylanceGUARD professional services and other cybersecurity applications. The Company generates software license revenue from term subscription products, which includes technical support, and any updates and upgrades. Professional services are provided through hourly rate and fixed fee arrangements. The Company recognizes the license revenue over the term of the contract beginning on the commencement date of each contract, the date that services are made available to customers. The Company’s software license and updates, to the extent made available, are not distinct in the context of the contract as they are critical to the ongoing usability of the solution and so fulfill a single promise to the customer in the contract. The typical subscription term is one three Revenue for hourly rate professional services arrangements is recognized as services are performed and revenue for fixed fee professional services is recognized on a proportional performance basis as the services are performed. This also now includes BlackBerry cybersecurity services, which was previously included within IoT; it has been reclassified into BlackBerry Cylance for the years ended February 28, 2019 and February 28, 2018 in order to conform to the current year presentation. Licensing Licensing includes revenue from the Company’s intellectual property licensing arrangements, BBM Consumer licensing arrangement, settlement awards and mobility licensing software arrangements, which include revenue from licensed hardware sales. The Company’s outbound patent licensing agreements provide for license fees that may be a single upfront payment or multiple payments representing all or a majority of the licensing revenue that will be payable to the Company. These agreements may be perpetual or term in nature and grant (i) a limited non-exclusive, non-transferable license to certain of the Company’s patents, (ii) a covenant not to enforce patent rights against the licensee, and (iii) the release of the licensee from certain claims. The Company examines intellectual property agreements on a case-by-case basis to determine whether the intellectual property has standalone functionality and whether the Company is the principal or agent in the transaction. Revenue from patent licensing agreements is often recognized for the transaction price either when the license has been transferred to the customer or based upon subsequent sales by the customer in the case of sales-based royalty licenses where the license of intellectual property is the predominant item to which the royalty relates. The transaction price may include non-monetary consideration in the form of patents transferred to the Company, which is recorded at fair value as determined by a combination of market and income-based valuation approaches. As part of the Company’s business strategy and operations is to monetize its IP, the Company recognizes revenue related to consideration that may result from a negotiated agreement with a licensee that utilized the Company’s IP prior to signing a patent license agreement with the Company or from the resolution of a disagreement or arbitration with a licensee over the specific terms of an existing license agreement. The Company may also recognize revenue related to consideration for past patent royalties in connection with the settlement of patent litigation where there was no prior patent license agreement. The Company’s BBM Consumer licensing arrangement is a multi-year agreement where the license was not previously separately identifiable from the requirement to maintain interoperability between the licensed BBM Consumer product and the BBM Enterprise product sold by the Company. During fiscal 2020, the licensed BBM Consumer product was shut down by the licensee, removing any requirement for the Company to maintain interoperability and thus all performance obligations were completed. As a result, the Company estimated the amount for which it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur and recognized that amount as revenue during fiscal 2020. In fiscal 2017 and fiscal 2018, the Company entered into multiple multi-year license agreements under which the Company licensed its security software and services suite and, in many cases, related brand assets to third parties who design, manufacture, sell and provide customer support for BlackBerry-branded and white-label handsets. Mobility license revenue for licensees whose sales exceed contractual sales minimums is recognized when licensed products are sold as reported by the Company’s licensees. For licensees whose sales do not exceed contractual sales minimums, revenue is recognized over time, ratably over the license term based on contractual minimum amounts due to the promise to provide engineering services to the licensees. Other Other includes revenue associated with the Company’s legacy service access fees (“SAF”) business, relating to subscribers utilizing the Company’s legacy BlackBerry 7 and prior operating systems, as well as revenue relating to unspecified future software upgrade rights for devices previously sold by the Company and legacy handheld revenue associated with the release of previously accrued amounts when the Company determines it has no further performance obligations. SAF revenue is recognized over time as the monthly service is provided. In instances where the Company invoices the SAF customer prior to performing the service, the pre-billing is recorded as deferred revenue. See Note 13 for further information, including revenue by major product and service types. Significant judgments in revenue recognition The Company’s contracts with customers often include promises to transfer multiple products and services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Variable consideration is included in the transaction price if, in the Company’s judgment, it is probable that a significant future reversal of cumulative revenue recognized under the contract will not occur. Any estimates, including any constraints on variable consideration, are evaluated at each reporting period. Judgment is required to determine the fair value of non-cash consideration at contract inception. The Company uses an independent third-party valuator for the fair value of non-cash consideration. Judgment is required to determine the SSP for each distinct performance obligation. The Company’s products and services often have observable SSP when the Company sells a promised product or service separately to similar customers. A contractually stated price or list price for a good or service may be the SSP of that good or service. However, in instances where SSP is not directly observable, the Company determines the SSP by maximizing observable inputs and using an adjusted market assessment approach using information that may include market conditions and other observable inputs from the Company’s pricing team, including historical SSP. Judgment is required to determine in certain agreements if the Company is the principal or agent in the arrangement. The Company considers factors such as, but not limited to, which party can direct the usage of the product or service, which party obtains substantially all the remaining benefits and which party has the ability to establish the selling price. Significant judgment is required to determine the estimated customer life used in perpetual license contracts that require access to the Company’s proprietary secure network infrastructure to function. The Company uses historical experience regarding the length of the technology upgrade cycle and the expected life of the product to draw this conclusion. Revenue contract balances Timing of revenue recognition may differ from the timing of invoicing to customers. Contract assets are generated when contractual billing schedules differ from revenue recognition timing. An unbilled receivable is recorded in instances when revenue is recognized prior to invoicing, and amounts collected in advance of services being provided are recorded as deferred revenue. Certain sales commissions are considered incremental and recoverable costs of obtaining a contract with a customer. The Company’s capitalized commissions are recorded as other current assets and other long-term assets and are recognized immediately or amortized proportionally, based on the satisfaction of the related performance obligations, and are included in selling, marketing and administration expenses. See Note 13 for further information on the Company’s contract balances. Payment terms and conditions vary by contract type although standard billing terms are that payment is due upon receipt of invoice, payable within 30 to 60 days. In instances where the timing of revenue recognition differs from the timing of invoicing, the Company has determined that contracts generally do not include a significant financing component if the period between when the payment is received and when the Company transfers the promised goods or services to the customer will be one year or less. |
Income taxes | Income taxes The Company uses the liability method of income tax allocation to account for income taxes. Deferred income tax assets and liabilities are recognized based upon temporary differences between the financial reporting and income tax bases of assets and liabilities and measured using enacted income tax rates and tax laws that will be in effect when the differences are expected to reverse. The Company records a valuation allowance to reduce deferred income tax assets to the amount that is more likely than not to be realized. The Company considers both positive evidence and negative evidence, to determine whether, based upon the weight of that evidence, a valuation allowance is required. Judgment is required in considering the relative impact of negative and positive evidence. Significant judgment is also required in evaluating the Company’s uncertain income tax positions and provisions for income taxes. Liabilities for uncertain income tax positions are recognized based on a two-step approach. The first step is |
Research and development | Research and development Research costs are expensed as incurred. Development costs for licensed software to be sold, leased or otherwise marketed are subject to capitalization beginning when a product’s technological feasibility has been established and ending when a product is available for general release to customers. The Company’s products are generally released soon after technological feasibility has been established and therefore costs incurred subsequent to achievement of technological feasibility are not significant and have been expensed as incurred. The Company does not currently have any capitalized research and development costs other than those identified through business combinations as in-process research and development included within intangible assets, net, which were recorded at their fair values and began amortizing when the related technology became available for general release to customers. |
Comprehensive income (loss) | Comprehensive income (loss) Comprehensive income (loss) is defined as the change in net assets of a business enterprise during a period from transactions and other events and circumstances from non-owner sources and includes all changes in equity during a period, except those resulting from investments by owners and distributions to owners. The Company’s reportable items of comprehensive income (loss) are the cumulative translation adjustment resulting from non-U.S. dollar functional currency subsidiaries as described under the foreign currency translation policy above, cash flow hedges as described above in derivative financial instruments, changes in the fair value of available-for-sale investments as described in Note 3, changes in fair value from instrument-specific credit risk on Debentures as described in Notes 7 and 10, and actuarial gains or losses associated with certain other post-employment benefit obligations. Realized gains or losses on available-for-sale investments are reclassified into investment income using the specific identification basis. |
Earnings (loss) per share | Earnings (loss) per share Earnings (loss) per share is calculated based on the weighted average number of common shares outstanding during the fiscal year. The treasury stock method is used for the calculation of the dilutive effect of stock options. The if-converted method is used for the calculation of the dilutive effect of the Debentures. |
Stock-based compensation plans | Stock-based compensation plans The Company has stock-based compensation plans. Awards granted under the plans are detailed in Note 8(b). The Equity Incentive Plan (the “Equity Plan”) was adopted during fiscal 2014. The Equity Plan provides for grants of incentive stock options and restricted share units (“RSUs”) to officers and employees of the Company or its subsidiaries. RSUs may be either time-based (“TBRSUs”) or time- and performance-based (“PBRSUs”). The number of common shares authorized for awards under the Equity Plan is 33,875,000 common shares. Any shares that are subject to options granted under the Equity Plan are counted against this limit as 0.625 shares for every one option granted, any shares that are subject to TBRSUs granted under the Equity Plan are counted against this limit as one share for every TBRSU, and any shares that are subject to PBRSUs granted under the Equity Plan are counted against this limit at the maximum performance attainment (which is generally 1.5 shares for every PBRSU). Awards previously granted under the Equity Plan that expire or are forfeited, or settled in cash, are added to the shares available under the Equity Plan. Options forfeited will be counted as 0.625 shares to the shares available under the Equity Plan. Shares issued as awards other than options that expire or are forfeited (i.e, RSUs), settled in cash or sold to cover withholding tax requirements are counted as one share added to the shares available under the Equity Plan. There are approximately 4 million shares in the equity pool available for future grants under the Equity Plan as at February 29, 2020. In connection with the Cylance (as defined in Note 5) acquisition, the Company adopted the BlackBerry-Cylance Stock Plan (the “Cylance Stock Plan”). The Cylance Stock Plan provides for the grant of Replacement Awards (as defined in Note 8(b)) in connection with unvested Cylance employee equity awards. The number of common shares authorized for awards under the Cylance Stock Plan is 9,144,176 common shares, which is equal to the amount of Replacement Awards granted. As at February 28, 2019, there were no shares remaining in the Cylance Stock Plan for future grants. In addition, no shares may be reissued under the Cylance Stock Plan in respect of shares that expire, are forfeited, or are settled in cash. The Company measures stock-based compensation expense for options at the grant date based on the award’s fair value as calculated by the Black-Scholes-Merton (“BSM”) option pricing model for stock options, and the expense is recognized ratably over the vesting period. Options granted under the Equity Plan generally vest over a four Any consideration paid by employees on exercise of stock options, plus any recorded stock-based compensation within additional paid-in capital related to that stock option, is credited to capital stock. RSUs are redeemed for common shares issued by the Company or the cash equivalent on the vesting dates established by the Board or the Compensation, Nomination and Governance Committee of the Board. The RSUs granted under the Equity Plan generally vest over a three The Company expects to settle RSUs, upon vesting, through the issuance of new common shares from treasury. The Company has a Deferred Share Unit Plan (the “DSU Plan”), originally approved by the Board on December 20, 2007, under which each independent director is credited with Deferred Share Units (“DSUs”) in satisfaction of all or a portion of the cash fees otherwise payable to them for serving as a director of the Company. Each independent director’s annual retainer will be entirely satisfied in the form of DSUs. Within a specified period after a director ceases to be a member of the Board, DSUs will be redeemed for cash with the redemption value of each DSU equal to the weighted average trading price of the Company’s shares over the five |
Blackberry Limited and Summar_3
Blackberry Limited and Summary of Significant Accounting Policies and Critical Accounting Estimates (Tables) | 12 Months Ended |
Feb. 29, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments | As a result of the correction, the balances in the Company’s consolidated balance sheet as at February 28, 2019 have been reclassified in the consolidated balance sheet as at February 29, 2020 as follows: As at Correction As at Assets Accounts receivable, net $ 194 $ 39 $ 233 Liabilities Deferred revenue, current $ 214 $ 39 $ 253 |
Property Plant And Equipment Useful Lives | Property, plant and equipment are stated at cost, less accumulated amortization. Amortization is provided using the following rates and methods: Buildings, leasehold improvements and other Straight-line over terms between 5 and 40 years BlackBerry operations and other information technology Straight-line over terms between 3 and 5 years Manufacturing, repair and research and development equipment Straight-line over terms between 1 and 5 years Furniture and fixtures Declining balance at 20% per annum |
Intangible Asset Useful Lives | Intangible assets with definite lives are stated at cost, less accumulated amortization. Amortization is provided on a straight-line basis over the following terms: Acquired technology Between 3 and 10 years Intellectual property Between 1 and 17 years Other acquired intangibles Between 2 and 10 years |
Fair Value Measurements, Cash_2
Fair Value Measurements, Cash, Cash Equivalent and Investments (Tables) | 12 Months Ended |
Feb. 29, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Summary of Changes in Fair Value of Company's Level 3 Assets | The following table summarizes the changes in fair value of the Company’s Level 3 assets for the years ended February 29, 2020 and February 28, 2019: Level 3 Balance at February 28, 2018 $ 20 Principal repayments (1) Balance at February 28, 2019 19 Principal repayments (19) Balance at February 29, 2020 $ — |
Components of Cash, Cash Equivalents and Investments | The components of cash, cash equivalents and investments by fair value level as at February 29, 2020 were as follows: Cost Basis Unrealized Unrealized Other-than- Fair Value Cash and Short-term Long-term Restricted Cash Bank balances $ 100 $ — $ — $ — $ 100 $ 100 $ — $ — $ — Other investments 32 — — — 32 — — 32 — 132 — — — 132 100 — 32 — Level 1: Equity securities 10 — (8) — 2 — 2 — — Level 2: Term deposits, certificates of deposits, and GICs 118 — — — 118 44 25 — 49 Bankers’ acceptances/bearer deposit notes 84 — — — 84 30 54 — — Commercial paper 276 — — — 276 108 168 — — Non-U.S. promissory notes 133 — — — 133 25 108 — — Non-U.S. government sponsored enterprise notes 144 — — — 144 — 144 — — Non-U.S. treasury bills/notes 56 — — — 56 25 31 — — U.S. treasury bills/notes 45 — — — 45 45 — — — 856 — — — 856 277 530 — 49 $ 998 $ — $ (8) $ — $ 990 $ 377 $ 532 $ 32 $ 49 The components of cash, cash equivalents and investments by fair value level as at February 28, 2019 were as follows: Cost Basis Unrealized Unrealized Other-than- Fair Value Cash and Short-term Long-term Restricted Cash and Cash Equivalents Bank balances $ 326 $ — $ — $ — $ 326 $ 322 $ — $ — $ 4 Other investments 36 — — — 36 — — 36 — 362 — — — 362 322 — 36 4 Level 1: Equity securities 10 — (10) — — — — — — Level 2: Term deposits, certificates of deposits, and GICs 85 — — — 85 — 55 — 30 Bankers’ acceptances 39 — — — 39 4 35 — — Commercial paper 264 — — — 264 177 87 — — Non-U.S. promissory notes 20 — — — 20 20 — — — Non-U.S. government sponsored enterprise notes 139 — — — 139 25 114 — — Non-U.S. treasury bills/notes 35 — — — 35 — 35 — — U.S. treasury bills/notes 42 — — — 42 — 42 — — 624 — — — 624 226 368 — 30 Level 3: Auction rate securities 20 2 — (3) 19 — — 19 — $ 1,016 $ 2 $ (10) $ (3) $ 1,005 $ 548 $ 368 $ 55 $ 34 |
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents as at February 29, 2020, February 28, 2019 and February 28, 2018 from the consolidated balance sheets to the consolidated statements of cash flows: As at February 29, 2020 February 28, 2019 February 28, 2018 Cash and cash equivalents $ 377 $ 548 $ 816 Restricted cash and cash equivalents 49 34 39 Total cash, cash equivalents, restricted cash, and restricted cash equivalents presented in the consolidated statements of cash flows $ 426 $ 582 $ 855 |
Contractual Maturities of Available-for-Sale Investments | The contractual maturities of available-for-sale investments as at February 29, 2020 and February 28, 2019 were as follows: As at February 29, 2020 February 28, 2019 Cost Basis Fair Value Cost Basis (1) Fair Value Due in one year or less $ 856 $ 856 $ 624 $ 624 Due after five years — — 17 19 No fixed maturity 10 2 10 — $ 866 $ 858 $ 651 $ 643 ______________________________ (1) Cost basis includes other-than-temporary impairment. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Feb. 29, 2020 | |
Fair Value Disclosures [Abstract] | |
Summary of Changes in Fair Value of Company's Level 3 Assets | The following table summarizes the changes in fair value of the Company’s Level 3 assets for the years ended February 29, 2020 and February 28, 2019: Level 3 Balance at February 28, 2018 $ 20 Principal repayments (1) Balance at February 28, 2019 19 Principal repayments (19) Balance at February 29, 2020 $ — |
Consolidated Balance Sheets D_2
Consolidated Balance Sheets Details (Tables) | 12 Months Ended |
Feb. 29, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment comprised the following: As at February 29, 2020 February 28, 2019 Cost Buildings, leasehold improvements and other $ 72 $ 68 BlackBerry operations and other information technology 84 85 Manufacturing, repair and research and development equipment 73 73 Furniture and fixtures 11 14 240 240 Accumulated amortization 170 155 Net book value $ 70 $ 85 |
Intangible Assets | Intangible assets comprised the following: As at February 29, 2020 Cost Accumulated Net Book Acquired technology $ 1,019 $ 636 $ 383 Intellectual property 489 275 214 Other acquired intangibles 494 176 318 $ 2,002 $ 1,087 $ 915 As at February 28, 2019 Cost Accumulated Net Book Acquired technology $ 1,020 $ 557 $ 463 Intellectual property 466 239 227 Other acquired intangibles 494 116 378 $ 1,980 $ 912 $ 1,068 |
Intangible Assets, Weighted Average Remaining Useful Lives | The weighted average remaining useful lives of the intangible assets are as follows: As at February 29, 2020 February 28, 2019 Acquired technology 5.4 years 5.5 years Intellectual property 6.6 years 7.3 years Other acquired intangibles 6.0 years 6.8 years |
Changes to Carrying Amount of Goodwill | Changes to the carrying amount of goodwill during the fiscal years ended February 29, 2020, February 28, 2019 and February 28, 2018 were as follows: Carrying Amount Carrying amount as at February 28, 2017 $ 559 Effect of foreign exchange on non-U.S. dollar denominated goodwill 10 Carrying amount as at February 28, 2018 569 Effect of foreign exchange on non-U.S. dollar denominated goodwill (5) Goodwill acquired through business combination completed during the year 899 Carrying amount as at February 28, 2019 1,463 Measurement period adjustment (see Note 5) (2) Goodwill impairment charge (22) Effect of foreign exchange on non-U.S. dollar denominated goodwill (2) Carrying amount as at February 29, 2020 $ 1,437 |
Accrued Liabilities | Accrued liabilities comprised the following: As at February 29, 2020 February 28, 2019 Variable incentive accrual $ 33 $ 36 Operating lease liabilities, current (note 12) 31 — Other 138 156 $ 202 192 |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 12 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
Business Combinations [Abstract] | ||
Schedule of Fair Value Allocations of Acquisition Price | The following table summarizes the fair value allocations of the acquisition price of the assets acquired and liabilities assumed during fiscal 2019: Preliminary Balance February 28, 2019 Measurement Period Adjustment Balance as at August 31, 2019 Non-cash assets acquired Current assets $ 40 $ (6) $ 34 Property, plant and equipment and other long-term assets 25 — 25 Intangible assets Acquired technology 283 — 283 In-process research and development 66 — 66 Customer relationships 277 — 277 Trade name 20 — 20 Goodwill (1) 899 (2) 897 1,610 (8) 1,602 Liabilities assumed Current liabilities 27 1 28 Debt 125 — 125 Deferred revenue (2) 95 (2) 93 Deferred tax liability 22 1 23 Other long-term liabilities 8 (7) 1 277 (7) 270 Net non-cash assets acquired 1,333 (1) 1,332 Cash acquired 10 — 10 Restricted cash acquired 4 — 4 Net assets acquired 1,347 (1) 1,346 Settlement of acquired debt (3) 125 — 125 $ 1,472 $ (1) $ 1,471 Consideration Cash consideration $ 1,416 $ (1) $ 1,415 Replacement Awards issued (4) 21 — 21 Exchange shares (5) 35 — 35 Total consideration $ 1,472 $ (1) $ 1,471 _____________________________ (1) Goodwill represents the excess of the acquisition price over the fair value of net assets acquired, which is not expected to be deductible for tax purposes when goodwill results from share purchases. (2) The fair value of deferred revenue represents the costs to service the assumed obligations, plus a normal profit margin as required under purchase accounting. (3) $125 million in cash was paid to existing debt holders to settle Cylance debt outstanding at acquisition. (4) Fair value of 8,320,130 options and 824,046 RSUs (“Replacement Awards”) issued in connection with unvested Cylance employee equity awards, related to pre-combination service and considered purchase consideration. See Note 8(b) for details on the Replacement Awards. (5) In lieu of cash, a proportion of consideration owed to certain Cylance shareholders will be paid in BlackBerry shares issued from treasury in equal instalments on the first three anniversary dates of the acquisition. There are no service or other requirements associated with the issuance of these shares. | |
Revenue and Loss Before Income Taxes of Acquisition | The amounts of revenue and loss before income taxes of the acquisition above included in the consolidated statement of operations for the year ended February 28, 2019 are as follows: Revenue Loss before income taxes Actuals from acquisition date to February 28, 2019 $ 2 $ (5) | |
Business Acquisition, Pro Forma Information | The supplemental pro forma information, as if the acquisition had occurred on March 1, 2018, is as follows: For the Year Ended February 28, 2019 (unaudited) Revenue $ 1,027 Net loss (1) (77) ______________________________ (1) Includes measurement period adjustments identified during the fiscal year ended February 29, 2020 of $2 million to reflect if the adjustment to the provisional amounts had been recognized as of the acquisition date. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Feb. 29, 2020 | |
Income Tax Disclosure [Abstract] | |
Components of Provision for (Recovery of) Income Tax and Income from Continuing Operations Before Income Tax | The difference between the amount of the provision for (recovery of) income taxes and the amount computed by multiplying income (loss) before income taxes by the statutory Canadian tax rate is reconciled as follows: For the Years Ended February 29, 2020 February 28, 2019 February 28, 2018 Statutory Canadian tax rate 26.5 % 26.5 % 26.5 % Expected provision for (recovery of) income taxes $ (39) $ 20 $ 108 Differences in income taxes resulting from: Valuation allowance 41 (55) (169) Investment tax credits (10) (10) (3) Change in unrecognized income tax benefits (12) 9 8 Foreign tax rate differences 3 (1) (6) Effect of adjustments to deferred tax amounts for enacted changes resulting from U.S. tax reform — — 67 Non-deductible permanent differences 15 19 4 Goodwill impairment 6 — — Other differences 1 2 (9) Withholding tax on unremitted earnings (1) — 1 $ 4 $ (16) $ 1 |
Income (Loss) from Continuing Operations Before Income Taxes | For the Years Ended February 29, 2020 February 28, 2019 February 28, 2018 Income (loss) before income taxes: Canadian $ 15 $ 63 $ 413 Foreign (163) 14 (7) $ (148) $ 77 $ 406 |
Provision for Income Taxes from Continuing Operations | The provision for (recovery of) income taxes consists of the following: For the Years Ended February 29, 2020 February 28, 2019 February 28, 2018 Current Canadian $ 2 $ 2 $ 1 Foreign 3 7 7 Deferred Canadian — — — Foreign (1) (25) (7) $ 4 $ (16) $ 1 |
Components of Deferred Income Tax Assets and Liabilities | Deferred income tax assets and liabilities consist of the following temporary differences: As at February 29, 2020 February 28, 2019 Assets Property, plant, equipment and intangibles assets $ 174 $ 175 Non-deductible reserves 65 89 Minimum taxes 267 264 Convertible Debentures (see Note 7) 1 15 Research and development 327 304 Tax loss carryforwards 419 414 Other 117 98 Deferred income tax assets 1,370 1,359 Valuation allowance 1,223 1,192 Deferred income tax assets net of valuation allowance 147 167 Liabilities Property, plant, equipment and intangibles assets (147) (167) Deferred income tax liabilities (147) (167) Net deferred income tax asset (liability) $ — $ — Deferred income tax asset $ — $ 2 Deferred income tax liability — (2) $ — $ — |
Reconciliation of Beginning and Ending Amount of Unrecognized Income Tax Benefits | The Company’s total unrecognized income tax benefits as at February 29, 2020 and February 28, 2019 were $72 million and $84 million, respectively. A reconciliation of the beginning and ending amount of unrecognized income tax benefits that, if recognized, would affect the Company’s effective income tax rate is as follows: For the Years Ended February 29, 2020 February 28, 2019 February 28, 2018 Unrecognized income tax benefits, opening balance $ 84 $ 73 $ 65 Increase for income tax positions of prior years 2 10 4 Increase for income tax positions of current year 1 5 4 Settlement of tax positions (15) (4) — Unrecognized income tax benefits, ending balance $ 72 $ 84 $ 73 |
Summary of Open Tax Years by Major Jurisdiction | A summary of open tax years by major jurisdiction is presented below: Jurisdiction Canada (1) Fiscal 2011 - 2020 United States (2) Fiscal 2017 - 2020 United Kingdom Fiscal 2019 - 2020 ______________________________ (1) Includes federal as well as provincial jurisdictions, as applicable. (2) Pertains to federal tax years. Certain state jurisdictions remain open from fiscal 2015 through fiscal 2020. |
Summary of Net Operating Losses and Tax Credits Carryforward | As at February 29, 2020, the Company has the following net operating loss carryforwards and tax credits, which are scheduled to expire in the following years: Year of Expiry Net Operating Losses Capital Losses Research and Development Tax Credits (1) Minimum Taxes 2029 $ 10 $ — $ — $ — 2030 — — 5 109 2031 26 — 5 128 2032 78 — 3 27 2033 98 — 111 2 2034 94 — 109 1 2035 11 — 51 — 2036 399 — 40 — 2037 472 — 25 — 2038 185 — 19 — 2039 — — 18 — 2040 68 — 13 — Indefinite 173 31 21 — $ 1,614 $ 31 $ 420 $ 267 ______________________________ (1) Includes federal, provincial and state balances. |
Debentures (Tables)
Debentures (Tables) | 12 Months Ended |
Feb. 29, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debentures | The following table summarizes the changes in fair value of the Debentures for the fiscal year ended February 29, 2020, February 28, 2019 and February 28, 2018: As at February 29, 2020 Balance as at February 28, 2017 $ 591 Change in fair value of the Debentures 191 Balance as at February 28, 2018 782 Change in fair value of the Debentures (117) Balance as at February 28, 2019 665 Change in fair value of the Debentures (59) Balance as at February 29, 2020 $ 606 The following table shows the impact of the change in fair value of the Debentures for the fiscal years ended February 29, 2020, February 28, 2019 and February 28, 2018: For the Years Ended February 29, 2020 February 28, 2019 February 28, 2018 Income (charge) associated with the change in fair value from non-credit components recorded in the consolidated statements of operations (1) $ 66 $ 117 $ (191) Charges associated with the change in fair value from instrument-specific credit components recorded in AOCI (1) (7) — — Total decrease (increase) in the fair value of the Debentures (1) $ 59 $ 117 $ (191) ______________________________ (1) During the year ended February 28, 2018 and prior to the adoption of ASU 2016-01 on March 1, 2018, the changes in fair value from both instrument-specific credit components and non-credit components of the Debentures were recorded in the consolidated statement of operations for the fiscal year ended February 28, 2018. |
Capital Stock (Tables)
Capital Stock (Tables) | 12 Months Ended |
Feb. 29, 2020 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Changes in Issued and Outstanding Common Shares | The following details the changes in issued and outstanding common shares for the years ended February 29, 2020, February 28, 2019 and February 28, 2018: Capital Stock and Stock Amount Common shares outstanding as at February 28, 2017 530,497 $ 2,512 Exercise of stock options 536 4 Common shares issued for restricted share unit settlements 7,258 — Stock-based compensation — 49 Share repurchase (1,992) (9) Common shares issued for employee share purchase plan 435 4 Common shares outstanding as at February 28, 2018 536,734 2,560 Exercise of stock options 105 1 Common shares issued for restricted share unit settlements 10,156 — Stock-based compensation — 67 Exchange shares issued from Cylance acquisition (see note 5) — 35 Value of pre-combination service related to Replacement Awards included in purchase consideration — 21 Common shares issued for employee share purchase plan 363 4 Common shares outstanding as at February 28, 2019 547,358 2,688 Exercise of stock options 1,189 3 Common shares issued for restricted share unit settlements 3,361 — Stock-based compensation — 63 Common shares issued related to exchanges shares (see note 5) 1,380 — Common shares issued for employee share purchase plan 911 6 Common shares outstanding as at February 29, 2020 554,199 $ 2,760 |
Summary of Option Activity | A summary of option activity for fiscal 2020 is shown below: Options Outstanding Number Weighted Average Aggregate Balance as at February 28, 2019 9,014 4.21 Granted during the year — — Exercised during the year (1,189) 2.80 Forfeited/canceled/expired during the year (2,120) 4.47 Balance as at February 29, 2020 5,705 $ 4.41 6.86 $ 8 Vested and expected to vest as at February 29, 2020 5,204 $ 4.35 6.76 $ 7 Exercisable as at February 29, 2020 3,465 $ 4.04 6.15 $ 6 |
Summary of Unvested Stock Options | A summary of unvested stock options since February 28, 2019 is shown below: Options Outstanding Number Weighted Average Balance as at February 28, 2019 8,458 $ 5.45 Vested during the year (4,317) 5.77 Forfeited during the year (1,901) 5.37 Balance as at February 29, 2020 2,240 $ 4.91 |
Option-Pricing Model Assumptions | The weighted average fair value of these grants was calculated using the BSM option pricing model with the following assumptions: February 29, 2020 February 28, 2019 February 28, 2018 Weighted average grant date fair value of stock options granted during the period $ — $3.97 to $7.48 $ — Assumptions: Risk-free interest rates — % 2.50% to 2.56% — % Expected life in years 0 3.91 to 6.16 — % Expected dividend yield — % — % — % Volatility — % 37% to 40% — % |
Restricted Share Unit Activity | A summary of RSU activity during fiscal 2020 is shown below: RSUs Outstanding Number Weighted Average Aggregate Balance as at February 28, 2019 17,758 9.48 Granted during the year 16,902 7.19 Vested during the year (3,361) 9.90 Forfeited/cancelled during the year (6,797) 9.15 Balance as at February 29, 2020 24,502 $ 7.93 1.65 $ 127 Expected to vest February 29, 2020 22,284 $ 7.88 1.65 $ 115 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Feb. 29, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings (loss) per share: For the Years Ended February 29, 2020 February 28, 2019 February 28, 2018 Net income (loss) for basic and diluted earnings (loss) per share available to common shareholders $ (152) $ 93 $ 405 Less: Debentures fair value adjustment (1) (2) (66) (117) — Add: interest expense on Debentures (1) (2) 23 24 — Net income (loss) for diluted earnings (loss) per share available to common shareholders $ (195) $ — $ 405 Weighted average number of shares outstanding (000’s) - basic (3) 553,861 540,477 532,888 Effect of dilutive securities (000’s) Stock-based compensation (4) (5) — 11,308 12,998 Conversion of Debentures (1) (2) 60,500 60,500 — Exchange shares from Cylance acquisition (6) — 4,182 — Weighted average number of shares and assumed conversions (000’s) diluted 614,361 616,467 545,886 Earnings (loss) per share - reported Basic $ (0.27) $ 0.17 $ 0.76 Diluted $ (0.32) $ 0.00 $ 0.74 ______________________________ (1) The Company has not presented the dilutive effect of the Debentures using the if-converted method in the calculation of diluted earnings (loss) per share for the year ended February 28, 2018, as to do so would be antidilutive. See Note 7 for details on the Debentures. (2) The Company has presented the dilutive effect of the Debentures using the if-converted method, assuming conversion at the beginning of the fiscal year for the years ended February 29, 2020 and February 28, 2019. Accordingly, to calculate diluted earnings (loss) per share, the Company adjusted net income (loss) by eliminating the fair value adjustment made to the Debentures and interest expense incurred on the Debentures in the years ended February 29, 2020 and February 28, 2019, and added the number of shares that would have been issued upon conversion to the diluted weighted average number of shares outstanding. See Note 7 for details on the Debentures. (3) Includes approximately 2,802,067 common shares remaining to be issued in equal installments on the next two anniversary dates of the Cylance acquisition, in consideration for the acquisition in the year ended February 28, 2019. There are no service or other requirements associated with the issuance of these shares. (4) The Company has not presented the dilutive effect of in-the-money options and RSUs that will be settled upon vesting by the issuance of new common shares in the calculation of diluted earnings (loss) per share for the year ended February 29, 2020, as to do so would be antidilutive. (5) The Company has presented the dilutive effect of in-the-money options and RSUs that will be settled upon vesting by the issuance of new common shares in the calculation of diluted earnings (loss) per share for the years ended February 28, 2019 and February 28, 2018. As at February 28, 2019, there were 8,985,836 options and 9,300,191 RSUs outstanding that were in-the-money and may have a dilutive effect on earnings (loss) per share in future periods (February 28, 2018 - 790,918 options and 14,068,069 RSUs). (6) The Company has presented the dilutive effect of the exchange shares in connection with the Cylance acquisition completed on February 21, 2019 in the calculation of diluted earnings (loss) per share for the year ended February 28, 2019. The remaining exchange shares are included in the calculation of weighted average number of shares outstanding for the year ended February 29, 2020 as noted in footnote 3 above. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Feb. 29, 2020 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss are as follows: As at February 29, 2020 February 28, 2019 February 28, 2018 Accumulated net unrealized gains (losses) on available-for-sale debt securities $ — $ 2 $ (7) Accumulated net unrealized losses on derivative instruments designated as cash flow hedges, net of tax (1) — (1) Foreign currency cumulative translation adjustment (9) (7) (1) Change in fair value from instruments-specific credit risk on Debentures (22) (14) — Actuarial losses associated with other post-employment benefit obligations (1) (1) (1) Accumulated other comprehensive loss $ (33) $ (20) $ (10) |
Leases, Codification Topic 842
Leases, Codification Topic 842 (Tables) | 12 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
Leases [Abstract] | ||
Components of Lease Expense | The components of lease expense were as follows: For the Year Ended February 29, 2020 Operating lease cost, included in selling, marketing and administration $ 33 Finance lease cost Amortization of ROU assets, included in amortization $ 2 Interest on lease liabilities, included in investment income, net — Total finance lease cost $ 2 | |
Schedule of Cash Flow Lease, Supplemental Disclosures | Supplemental cash flow information related to leases was as follows: For the Year Ended February 29, 2020 Cash paid for amounts included in the measurement of lease liabilities: Cash used in operating activities related to operating lease payments $ 40 Cash used in financing activities related to finance lease payments 2 | |
Balance Sheet Information Related to Leases | Supplemental consolidated balance sheet information related to leases was as follows: As at February 29, 2020 March 1, 2019 (adoption) Operating leases Operating lease assets Operating lease ROU assets $ 124 $ 161 Operating lease liabilities Accrued liabilities $ 31 $ 36 Operating lease liabilities 120 153 Total operating lease liabilities $ 151 $ 189 Finance leases Finance lease assets Property, plant and equipment $ 5 $ 8 Accumulated amortization (4) (5) Total finance lease assets $ 1 $ 3 Finance lease liabilities Accrued liabilities $ 1 $ 2 Other long-term liabilities — 1 Total finance lease liabilities $ 1 $ 3 | |
Lease Weighted Average Remaining Lease term and Weighted Average Discount Rate | As at February 29, 2020 Weighted average remaining lease term Operating leases 5.5 years Finance leases 1.3 years Weighted average discount rate Operating lease 3.6 % Finance leases 2.2 % | |
Lessee, Operating Lease, Liability, Maturity | Maturities of undiscounted lease liabilities were as follows: As at February 29, 2020 Operating Leases Finance Leases Fiscal year 2021 $ 36 $ 1 Fiscal year 2022 34 — Fiscal year 2023 28 — Fiscal year 2024 22 — Fiscal year 2025 17 — Thereafter 29 — Total future minimum lease payments 166 1 Less: Imputed interest (15) — Total $ 151 $ 1 | |
Schedule of Future Minimum Rental Payments for Operating Leases (ASC840) | Supplemental Information for Comparative Periods As of February 28, 2019, prior to the adoption of ASC 842, future minimum annual lease payments related to operating leases were as follows: 2020 $ 36 2021 28 2022 27 2023 27 2024 20 Thereafter 47 $ 185 |
Revenue and Segment Disclosure
Revenue and Segment Disclosure (Tables) | 12 Months Ended |
Feb. 29, 2020 | |
Segment Reporting [Abstract] | |
Revenue from External Customers by Geographic Areas | The Company’s revenue, classified by major geographic region in which the Company’s customers are located, was as follows: For the Years Ended February 29, 2020 (1) February 28, 2019 (1) February 28, 2018 (2) North America (3) 743 71.4 % 599 66.2 % 540 58.0 % Europe, Middle East and Africa 221 21.3 % 222 24.6 % 278 29.8 % Other regions 76 7.3 % 83 9.2 % 114 12.2 % Total $ 1,040 100.0 % $ 904 100.0 % $ 932 100.0 % ______________________________ ( 1) As reported under ASC 606. (2) Comparative information has not been restated and continues to be reported under the accounting standards in effect for the year ended February 28, 2018. (3) North America includes all revenue from the Company’s intellectual property arrangements, due to the global applicability of the patent portfolio and licensing arrangements thereof. |
Revenue by Product and Service Type | Total revenue, classified by product and service type (see Note 1), was as follows: For the Years Ended February 29, 2020 (1) February 28, 2019 (1) February 28, 2018 (2) IoT $ 540 $ 554 $ 551 BlackBerry Cylance 151 5 — Licensing 328 286 196 Other 21 59 185 Total $ 1,040 $ 904 $ 932 ______________________________ (1) As reported under ASC 606. (2) Comparative information has not been restated and continues to be reported under the accounting standards in effect for the year ended February 28, 2018. |
Revenue Classified by Timing of Recognition | Revenue, classified by timing of recognition, was as follows: For the Year Ended February 29, 2020 February 28, 2019 Products and services transferred over time $ 512 $ 488 Products and services transferred at a point in time 528 416 Total $ 1,040 $ 904 |
Revenue Contract Balances | The following table sets forth the activity in the Company’s revenue contract balances for the fiscal year ended February 29, 2020: Accounts Receivable Deferred Revenue Deferred Commissions Opening balance as at February 28, 2019, as corrected $ 252 $ 389 $ 23 Increases due to invoicing of new or existing contracts, associated contract acquisition costs, or other 761 585 37 Decrease due to payment, fulfillment of performance obligations, or other (746) (601) (32) Increase (decrease), net 15 (16) 5 Closing balance as at February 29, 2020 $ 267 $ 373 $ 28 |
Transaction Price Allocated to the Remaining Performance Obligation | The table below discloses the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied as at February 29, 2020 and the time frame in which the Company expects to recognize this revenue. The disclosure includes estimates of variable consideration, except when the variable consideration is a sales-based or usage-based royalty promised in exchange for a license of intellectual property. As at February 29, 2020 Less than 12 Months 12 to 24 Months Thereafter Total Remaining performance obligations $ 279 $ 101 $ 43 $ 423 |
Long-lived Assets and Total Assets by Geographic Areas | Property, plant and equipment, intangible assets, operating lease ROU assets and goodwill, classified by geographic segments in which the Company’s assets are located, were as follows: As at February 29, 2020 February 28, 2019 Property, Plant and Equipment, Intangible Assets, Operating Lease ROU Assets and Goodwill Total Assets Property, Plant and Equipment, Intangible Assets and Goodwill Total Assets Canada $ 374 $ 657 $ 396 $ 667 United States 2,132 3,071 2,178 3,099 Other 40 160 42 202 $ 2,546 $ 3,888 $ 2,616 $ 3,968 |
Cash Flow and Additional Info_2
Cash Flow and Additional Information (Tables) | 12 Months Ended |
Feb. 29, 2020 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Certain consolidated statements of cash flow information related to interest and income taxes paid is summarized as follows: For the Years Ended February 29, 2020 February 28, 2019 February 28, 2018 Interest paid during the year $ 23 $ 24 $ 39 Income taxes paid during the year 8 6 6 Income tax refunds received during the year 9 15 7 |
Correction of Previously Issued
Correction of Previously Issued Financial Statements (Details) - USD ($) $ in Millions | 12 Months Ended | |
Feb. 28, 2019 | Feb. 29, 2020 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Accounts receivable, net (note 4) | $ 233 | $ 215 |
Deferred Revenue, Current, Total | 253 | $ 264 |
Previously Reported [Member] | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Accounts receivable, net (note 4) | 194 | |
Deferred Revenue, Current, Total | 214 | |
Restatement Adjustment [Member] | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Accounts receivable, net (note 4) | 233 | |
Quantifying Misstatement in Current Year Financial Statements, Amount | 39 | |
Deferred Revenue, Current, Total | $ 253 |
- Blackberry Limited and Summar
- Blackberry Limited and Summary of Significant Accounting Policies and Critical Accounting Estimates - Additional Information (Details) endpoint in Millions | 12 Months Ended |
Feb. 29, 2020endpoint | |
Additional Information [Line Items] | |
Number of endpoints secured | 500 |
Number of endpoints secured, cars | 150 |
Liability for uncertain income tax positions, percentage minimum | 50.00% |
Minimum | |
Additional Information [Line Items] | |
Maturity period of long-term investments | 1 year |
Maximum | |
Additional Information [Line Items] | |
Maturity period of cash equivalents | 3 months |
Maturity period of short-term investments | 1 year |
Blackberry Limited and Summar_4
Blackberry Limited and Summary of Significant Accounting Policies and Critical Accounting Estimates - Property, plant and equipment, net (Details) | 12 Months Ended |
Feb. 29, 2020 | |
Buildings, leasehold improvements and other | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
Buildings, leasehold improvements and other | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 40 years |
BlackBerry operations and other information technology | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
BlackBerry operations and other information technology | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
Manufacturing, repair and research and development equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 1 year |
Manufacturing, repair and research and development equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Reducing balance method depreciation percentage | 20.00% |
Blackberry Limited and Summar_5
Blackberry Limited and Summary of Significant Accounting Policies and Critical Accounting Estimates - Schedule of Finite-Lived Intangible Assets (Details) | 12 Months Ended |
Feb. 29, 2020 | |
Acquired technology | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life of finite-lived intangible assets | 3 years |
Acquired technology | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life of finite-lived intangible assets | 10 years |
Intellectual property | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life of finite-lived intangible assets | 1 year |
Intellectual property | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life of finite-lived intangible assets | 17 years |
Other acquired intangibles | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life of finite-lived intangible assets | 2 years |
Other acquired intangibles | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life of finite-lived intangible assets | 10 years |
Blackberry Limited and Summar_6
Blackberry Limited and Summary of Significant Accounting Policies and Critical Accounting Estimates - Revenue Recognition, Multiple-Deliverable Arrangements (Details) | 12 Months Ended |
Feb. 29, 2020 | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |
Term Subscription Contract Duration - IoT | 4 years |
Software maintenance revenue term | 1 year |
Maximum | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |
License Revenue Term - BlackBerry Cylance | 3 years |
Minimum | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |
License Revenue Term - BlackBerry Cylance | 1 year |
Blackberry Limited and Summar_7
Blackberry Limited and Summary of Significant Accounting Policies and Critical Accounting Estimates - Stock-based Compensation (Details) - shares | 12 Months Ended | |
Feb. 29, 2020 | Feb. 21, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Number of common shares authorized under the Equity Plan (in shares) | 33,875,000 | |
Shares issued as options (in shares) impact to Equity Plan | 0.625 | |
Options forfeited (in shares) impact to Equity Plan | 0.625 | |
RSUs, forfeited, settled in cash or sold to cover withholding tax requirements, counted as (in shares) impact to Equity Plan | 1 | |
Number of trading days | 5 days | |
BlackBerry-Cylance Plan - Authorized Number of shares | 9,144,176 | |
Shares in the equity pool available for future grants | 4,000,000 | |
TBRSU Share Limit | 1 | |
PBRSU Share Limit | 1.5 |
Blackberry Limited and Summar_8
Blackberry Limited and Summary of Significant Accounting Policies and Critical Accounting Estimates - Vesting Scenarios (Details) | 12 Months Ended |
Feb. 29, 2020shares | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Option vesting period | 4 years |
Options to vest in Year 1 | 0.25 |
Amount of options that will vest on monthly basis after Year 1 | 0.75 |
RSUs vesting period | 3 years |
Adoption of Accounting Polici_2
Adoption of Accounting Policies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 29, 2020 | Mar. 01, 2019 | Feb. 28, 2019 | |
Accounting Policies [Abstract] | |||
Operating lease right-of-use assets, net | $ 124 | $ 161 | $ 0 |
Lease Liabilities Prior to RAP | 175 | ||
Cumulative impact of adoption of ASC 842 | 14 | ||
RAP Operating Lease Liabilities and Accrued Liabilities | 14 | ||
Operating Lease, Liability | $ 151 | $ 189 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Changes in Fair Value of Company's Level 3 Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
Cash and Cash Equivalents [Abstract] | ||
Beginning Balance | $ 19 | $ 20 |
Principal repayments | 19 | 1 |
Ending Balance | $ 0 | $ 19 |
Investments that are communicated to the third party for consideration of reasonableness, threshold limit for fair values | 0.50% |
Cash, Cash Equivalents and Inve
Cash, Cash Equivalents and Investments - Components of Cash, Cash Equivalents and Investments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Cash and Cash Equivalents [Line Items] | |||
Cost Basis | $ 998 | $ 1,016 | |
Unrealized Gains | 0 | 2 | |
Unrealized Losses | (8) | 10 | |
Other-than- temporary Impairment | 0 | (3) | |
Fair Value | 990 | 1,005 | |
Cash and Cash Equivalents | 377 | 548 | |
Short-term Investments | 532 | 368 | |
Long-term investments | 32 | 55 | |
Restricted cash and cash equivalents | 49 | 34 | $ 39 |
Bank balances | |||
Cash and Cash Equivalents [Line Items] | |||
Cost Basis | 100 | 326 | |
Unrealized Gains | 0 | 0 | |
Unrealized Losses | 0 | 0 | |
Other-than- temporary Impairment | 0 | 0 | |
Fair Value | 100 | 326 | |
Cash and Cash Equivalents | 100 | 322 | |
Short-term Investments | 0 | 0 | |
Long-term investments | 0 | 0 | |
Restricted cash and cash equivalents (note 3) | 0 | 4 | |
Other investments | |||
Cash and Cash Equivalents [Line Items] | |||
Cost Basis | 32 | 36 | |
Unrealized Gains | 0 | 0 | |
Unrealized Losses | 0 | 0 | |
Other-than- temporary Impairment | 0 | 0 | |
Fair Value | 32 | 36 | |
Cash and Cash Equivalents | 0 | 0 | |
Short-term Investments | 0 | 0 | |
Long-term investments | 32 | 36 | |
Restricted cash and cash equivalents (note 3) | 0 | 0 | |
Bank Balances and Other Investments [Domain] | |||
Cash and Cash Equivalents [Line Items] | |||
Cost Basis | 132 | 362 | |
Unrealized Gains | 0 | 0 | |
Unrealized Losses | 0 | 0 | |
Other-than- temporary Impairment | 0 | 0 | |
Fair Value | 132 | 362 | |
Cash and Cash Equivalents | 100 | 322 | |
Short-term Investments | 0 | 0 | |
Long-term investments | 32 | 36 | |
Restricted cash and cash equivalents (note 3) | 0 | 4 | |
Level 1: | Equity securities | |||
Cash and Cash Equivalents [Line Items] | |||
Cost Basis | 10 | 10 | |
Unrealized Gains | 0 | 0 | |
Unrealized Losses | (8) | 10 | |
Other-than- temporary Impairment | 0 | 0 | |
Fair Value | 2 | 0 | |
Cash and Cash Equivalents | 0 | 0 | |
Short-term Investments | 2 | 0 | |
Long-term investments | 0 | 0 | |
Restricted cash and cash equivalents (note 3) | 0 | 0 | |
Level 2: | |||
Cash and Cash Equivalents [Line Items] | |||
Cost Basis | 856 | 624 | |
Unrealized Gains | 0 | 0 | |
Unrealized Losses | 0 | 0 | |
Other-than- temporary Impairment | 0 | 0 | |
Fair Value | 856 | 624 | |
Cash and Cash Equivalents | 277 | 226 | |
Short-term Investments | 530 | 368 | |
Long-term investments | 0 | 0 | |
Restricted cash and cash equivalents (note 3) | 49 | 30 | |
Level 2: | Term deposits, certificates of deposits, and GICs | |||
Cash and Cash Equivalents [Line Items] | |||
Cost Basis | 118 | 85 | |
Unrealized Gains | 0 | 0 | |
Unrealized Losses | 0 | 0 | |
Other-than- temporary Impairment | 0 | 0 | |
Fair Value | 118 | 85 | |
Cash and Cash Equivalents | 44 | 0 | |
Short-term Investments | 25 | 55 | |
Long-term investments | 0 | 0 | |
Restricted cash and cash equivalents (note 3) | 49 | 30 | |
Level 2: | Bankers’ acceptances/bearer deposit notes | |||
Cash and Cash Equivalents [Line Items] | |||
Cost Basis | 84 | 39 | |
Unrealized Gains | 0 | 0 | |
Unrealized Losses | 0 | 0 | |
Other-than- temporary Impairment | 0 | 0 | |
Fair Value | 84 | 39 | |
Cash and Cash Equivalents | 30 | 4 | |
Short-term Investments | 54 | 35 | |
Long-term investments | 0 | 0 | |
Restricted cash and cash equivalents (note 3) | 0 | 0 | |
Level 2: | Commercial paper | |||
Cash and Cash Equivalents [Line Items] | |||
Cost Basis | 276 | 264 | |
Unrealized Gains | 0 | 0 | |
Unrealized Losses | 0 | 0 | |
Other-than- temporary Impairment | 0 | 0 | |
Fair Value | 276 | 264 | |
Cash and Cash Equivalents | 108 | 177 | |
Short-term Investments | 168 | 87 | |
Long-term investments | 0 | 0 | |
Restricted cash and cash equivalents (note 3) | 0 | 0 | |
Level 2: | Non-U.S. promissory notes | |||
Cash and Cash Equivalents [Line Items] | |||
Cost Basis | 133 | 20 | |
Unrealized Gains | 0 | 0 | |
Unrealized Losses | 0 | 0 | |
Other-than- temporary Impairment | 0 | 0 | |
Fair Value | 133 | 20 | |
Cash and Cash Equivalents | 25 | 20 | |
Short-term Investments | 108 | 0 | |
Long-term investments | 0 | 0 | |
Restricted cash and cash equivalents (note 3) | 0 | 0 | |
Level 2: | Non-U.S. government sponsored enterprise notes | |||
Cash and Cash Equivalents [Line Items] | |||
Cost Basis | 144 | 139 | |
Unrealized Gains | 0 | 0 | |
Unrealized Losses | 0 | 0 | |
Other-than- temporary Impairment | 0 | 0 | |
Fair Value | 144 | 139 | |
Cash and Cash Equivalents | 0 | 25 | |
Short-term Investments | 144 | 114 | |
Long-term investments | 0 | 0 | |
Restricted cash and cash equivalents (note 3) | 0 | 0 | |
Level 2: | Non-U.S. treasury bills/notes | |||
Cash and Cash Equivalents [Line Items] | |||
Cost Basis | 56 | 35 | |
Unrealized Gains | 0 | 0 | |
Unrealized Losses | 0 | 0 | |
Other-than- temporary Impairment | 0 | 0 | |
Fair Value | 56 | 35 | |
Cash and Cash Equivalents | 25 | 0 | |
Short-term Investments | 31 | 35 | |
Long-term investments | 0 | 0 | |
Restricted cash and cash equivalents (note 3) | 0 | 0 | |
Level 2: | U.S. treasury bills/notes | |||
Cash and Cash Equivalents [Line Items] | |||
Cost Basis | 45 | 42 | |
Unrealized Gains | 0 | 0 | |
Unrealized Losses | 0 | 0 | |
Other-than- temporary Impairment | 0 | 0 | |
Fair Value | 45 | 42 | |
Cash and Cash Equivalents | 45 | 0 | |
Short-term Investments | 0 | 42 | |
Long-term investments | 0 | 0 | |
Restricted cash and cash equivalents (note 3) | $ 0 | 0 | |
Level 3: | Auction rate securities | |||
Cash and Cash Equivalents [Line Items] | |||
Cost Basis | 20 | ||
Unrealized Gains | 2 | ||
Unrealized Losses | 0 | ||
Other-than- temporary Impairment | (3) | ||
Fair Value | 19 | ||
Cash and Cash Equivalents | 0 | ||
Short-term Investments | 0 | ||
Long-term investments | 19 | ||
Restricted cash and cash equivalents (note 3) | $ 0 |
Cash, Cash Equivalent, Restrict
Cash, Cash Equivalent, Restricted Cash, and Restricted Cash Equivalent Presented in the Consolidated Statements of Cash Flow (Details) - USD ($) $ in Millions | Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2017 |
Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 377 | $ 548 | $ 816 | |
Restricted cash and cash equivalents | 49 | 34 | 39 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Total | $ 426 | $ 582 | $ 855 | $ 785 |
Cash, Cash Equivalents and In_2
Cash, Cash Equivalents and Investments - Contractual Maturities of Available-for-Sale Investments (Details) - USD ($) $ in Millions | Feb. 29, 2020 | Feb. 28, 2019 |
Cost Basis | ||
Due in one year or less | $ 856 | $ 624 |
Due after five years | 0 | 17 |
No fixed maturity | 10 | 10 |
Total | 866 | 651 |
Fair Value | ||
Due in one year or less | 856 | 624 |
Due after five years | 0 | 19 |
No fixed maturity | 2 | 0 |
Total | $ 858 | $ 643 |
Cash, Cash Equivalents and In_3
Cash, Cash Equivalents and Investments - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Cash and Cash Equivalents [Line Items] | |||
Equity Investment without Readily Determinable Fair Value | $ 32 | $ 36 | |
Other than temporary impairment losses, available-for-sale securities | 0 | $ 0 | |
Impairment on certain private equity securities without readily determinable fair value | 3 | ||
Available-for-sale Securities, Gross Realized Losses | 0 | 0 | $ 1 |
Investments with continuous unrealized losses | 8 | $ 10 | |
Gain on sale of auction rate securities | $ 3 | ||
Minimum | |||
Cash and Cash Equivalents [Line Items] | |||
Lease term | 1 month | ||
Maximum | |||
Cash and Cash Equivalents [Line Items] | |||
Lease term | 6 years |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Changes in Fair Value of Company's Level 3 Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Unobservable Input [Roll Forward] | ||
Beginning Balance | $ 19 | $ 20 |
Principal repayments | (19) | (1) |
Ending Balance | $ 0 | $ 19 |
Investments that are communicated to the third party for consideration of reasonableness, threshold limit for fair values | 0.50% |
Consolidated Balance Sheets D_3
Consolidated Balance Sheets Details - Accounts Receivable (Details) $ in Millions | Feb. 29, 2020USD ($) | Feb. 28, 2019USD ($) |
Balance Sheet Related Disclosures [Abstract] | ||
Allowance for doubtful accounts receivable, current | $ 9 | $ 25 |
Number of customers with a balance greater than 10% of total accounts receivable | 2 | 1 |
Consolidated Balance Sheets D_4
Consolidated Balance Sheets Details - Other Current Assets (Details) | 12 Months Ended |
Feb. 29, 2020other_current_asset | |
Condensed Balance Sheet Statements, Captions [Line Items] | |
Other current assets greater than five percent of current assets | 0 |
Other Current Liabilities [Member] | Liabilities, Total [Member] | |
Condensed Balance Sheet Statements, Captions [Line Items] | |
Concentration risk, percentage | 5.00% |
Other Noncurrent Assets [Member] | Assets, Total | |
Condensed Balance Sheet Statements, Captions [Line Items] | |
Concentration risk, percentage | 5.00% |
Consolidated Balance Sheets D_5
Consolidated Balance Sheets Detail - Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Cost of property, plant and equipment | $ 240 | $ 240 | |
Accumulated amortization | 170 | 155 | |
Net book value | 70 | 85 | |
Depreciation | 24 | 20 | $ 36 |
Buildings, leasehold improvements and other | |||
Property, Plant and Equipment [Line Items] | |||
Cost of property, plant and equipment | 72 | 68 | |
BlackBerry operations and other information technology | |||
Property, Plant and Equipment [Line Items] | |||
Cost of property, plant and equipment | 84 | 85 | |
Manufacturing, repair and research and development equipment | |||
Property, Plant and Equipment [Line Items] | |||
Cost of property, plant and equipment | 73 | 73 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Cost of property, plant and equipment | $ 11 | $ 14 |
Consolidated Balance Sheets D_6
Consolidated Balance Sheets Detail - Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Cost | $ 2,002 | $ 1,980 | |
Accumulated Amortization | 1,087 | 912 | |
Net Book Value | 915 | 1,068 | |
Amortization expenses related to intangible assets | 188 | 129 | $ 141 |
Intangible assets acquired during the period | 32 | 725 | |
Intangible Assets Acquired, related to Cylance | 646 | ||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
2021 | 167 | ||
2022 | 144 | ||
2023 | 115 | ||
2024 | 106 | ||
2025 | 100 | ||
Acquired technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Cost | 1,019 | 1,020 | |
Accumulated Amortization | 636 | 557 | |
Net Book Value | 383 | 463 | |
Intellectual property | |||
Finite-Lived Intangible Assets [Line Items] | |||
Cost | 489 | 466 | |
Accumulated Amortization | 275 | 239 | |
Net Book Value | 214 | 227 | |
Other acquired intangibles | |||
Finite-Lived Intangible Assets [Line Items] | |||
Cost | 494 | 494 | |
Accumulated Amortization | 176 | 116 | |
Net Book Value | $ 318 | $ 378 |
Consolidated Balance Sheets D_7
Consolidated Balance Sheets Details Consolidated Balance Sheet Details - Intangibles Assets Useful Life (Details) | 12 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
Acquired Technology | ||
Intangible Assets, Weighted average remaining useful lives [Line Items] | ||
Intangible assets, remaining useful life | 5 years 4 months 24 days | 5 years 6 months |
Intellectual property | ||
Intangible Assets, Weighted average remaining useful lives [Line Items] | ||
Intangible assets, remaining useful life | 6 years 7 months 6 days | 7 years 3 months 18 days |
Other acquired intangibles | ||
Intangible Assets, Weighted average remaining useful lives [Line Items] | ||
Intangible assets, remaining useful life | 6 years | 6 years 9 months 18 days |
Consolidated Balance Sheets D_8
Consolidated Balance Sheets Details Consolidated Balance Sheet Details - Changes to Carrying Amount of Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Goodwill [Roll Forward] | |||
Carrying amount as of beginning of period | $ 1,463 | $ 569 | $ 559 |
Measurement period adjustment | 2 | ||
Impairment of goodwill | 22 | 0 | 0 |
Effect of foreign exchange on non-U.S. dollar denominated goodwill | (2) | (5) | 10 |
Goodwill, Purchase Accounting Adjustments | 899 | ||
Carrying amount as of end of period | $ 1,437 | $ 1,463 | $ 569 |
Consolidated Balance Sheets D_9
Consolidated Balance Sheets Detail - Accrued Liabilities (Details) - USD ($) $ in Millions | Feb. 29, 2020 | Feb. 28, 2019 |
Balance Sheet Related Disclosures [Abstract] | ||
Variable incentive accrual | $ 33 | $ 36 |
Operating lease liabilities, current (included in accruals) | 31 | 0 |
Other | 138 | 156 |
Accrued liabilities total | $ 202 | $ 192 |
Consolidated Balance Sheets _10
Consolidated Balance Sheets Detail - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Long-Lived Assets to be Abandoned [Line Items] | |||
Impairment of Long-Lived Assets Held-for-use | $ 10 | $ 0 | $ 11 |
Impairment of goodwill | $ 22 | $ 0 | $ 0 |
Other accrued liabilities greater than five percent of current liabilities | 0 | ||
Impairment Of Right of Use Assets | $ 8 | ||
Property, Plant and Equipment [Member] | |||
Long-Lived Assets to be Abandoned [Line Items] | |||
Impairment of Long-Lived Assets Held-for-use | $ 2 |
Business Acquisition - Revenue
Business Acquisition - Revenue and Earnings (Details) $ in Millions | 12 Months Ended |
Feb. 28, 2019USD ($) | |
Business Combinations Revenue and Earnings [Abstract] | |
Revenue | $ 2 |
Net loss before income taxes | $ (5) |
Business Acquisition - Pro Form
Business Acquisition - Pro Forma Information (Details) $ in Millions | 12 Months Ended |
Feb. 28, 2019USD ($) | |
Business Combinations - Pro Forma Information [Abstract] | |
Revenue | $ 1,027 |
Net loss | $ (77) |
Business Acquisitions - Summary
Business Acquisitions - Summary of Estimated Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |||
Aug. 31, 2019 | Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | Feb. 21, 2019 | |
Acquired Indefinite-lived Intangible Assets [Line Items] | |||||
Current Assets | $ (6) | ||||
Goodwill | (2) | ||||
Total Assets | (8) | ||||
Current Liabilities | 1 | ||||
Debt | 0 | ||||
Deferred revenue | (2) | ||||
Deferred tax liability | 1 | ||||
Other long-term liabilities | (7) | ||||
Total liabilities | (7) | ||||
Total assets, liabilities, net | (1) | ||||
Net assets acquired | (1) | ||||
Settlement of acquiree debt | $ 125 | ||||
Total consideration transferred | (1) | ||||
Cash consideration | $ 1,400 | ||||
Cash consideration | (1) | ||||
Pre-combination service of replacement awards included in purchase consideration | 21 | ||||
Exchange shares related to Cylance acquisition | $ 35 | ||||
Total purchase price | $ (1) | ||||
Employee Stock Option [Member] | |||||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||||
Number of awards granted | 0 | 8,320,130 | 0 | ||
Restricted Share Units (RSUs) | Replacement award [Member] | |||||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||||
Grants during the period, Number | 824,046 | ||||
Preliminary Balance [Member] | |||||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||||
Current assets | 40 | ||||
Property, plant and equipment | 25 | ||||
Acquired technology | 283 | ||||
In-process research and development | 66 | ||||
Customer relationships | 277 | ||||
Trade Name | 20 | ||||
Goodwill | 899 | ||||
Total Assets | 1,610 | ||||
Current liabilities | 27 | ||||
Debt | 125 | ||||
Deferred revenue | 95 | ||||
Deferred income tax liability | 22 | ||||
Other long-term liabilities | 8 | ||||
Liabilities assumed | 277 | ||||
Total assets, liabilities, net | 1,333 | ||||
Cash acquired | $ 10 | ||||
Restricted cash acquired | 4 | ||||
Net assets acquired | (1,347) | ||||
Settlement of acquiree debt | 125 | ||||
Total consideration transferred | 1,472 | ||||
Cash consideration | 1,416 | ||||
Pre-combination service of replacement awards included in purchase consideration | 21 | ||||
Exchange shares related to Cylance acquisition | 35 | ||||
Total purchase price | 1,472 | ||||
Final after measurement period [Member] | |||||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||||
Current assets | 34 | ||||
Property, plant and equipment | 25 | ||||
Acquired technology | 283 | ||||
In-process research and development | 66 | ||||
Customer relationships | 277 | ||||
Trade Name | 20 | ||||
Goodwill | 897 | ||||
Total Assets | 1,602 | ||||
Current liabilities | 28 | ||||
Debt | 125 | ||||
Deferred revenue | 93 | ||||
Deferred income tax liability | 23 | ||||
Other long-term liabilities | 1 | ||||
Liabilities assumed | 270 | ||||
Total assets, liabilities, net | 1,332 | ||||
Cash acquired | 10 | ||||
Restricted cash acquired | 4 | ||||
Net assets acquired | (1,346) | ||||
Settlement of acquiree debt | 125 | ||||
Total consideration transferred | 1,471 | ||||
Cash consideration | 1,415 | ||||
Pre-combination service of replacement awards included in purchase consideration | 21 | ||||
Exchange shares related to Cylance acquisition | $ 35 | ||||
Total purchase price | $ 1,471 |
Business Acquisitions - Additio
Business Acquisitions - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
Business Combinations - Measurement Period Adjustment [Abstract] | ||
Cash consideration | $ 1,400 | |
Acquisition-related costs (included in selling, general and administration expenses for the fiscal year ended February 29, 2016) | $ 12 | |
Measurement period adjustment | $ 2 | |
Weighted average useful life acquired technology | 8 years | |
Weighted average useful life IPR&D | 9 years | |
Weighted average useful life, customer relationship | 9 years | |
Weighted average useful life Trade Name | 7 years |
Income Taxes - Components of Pr
Income Taxes - Components of Provision for (Recovery of) Income Tax and Income from Continuing Operations Before Income Tax (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Income Tax Disclosure [Abstract] | |||
Statutory Canadian tax rate | 26.50% | 26.50% | 26.50% |
Expected provision for (recovery of) income taxes from continuing operations | $ (39) | $ 20 | $ 108 |
Differences in income taxes resulting from: | |||
Valuation allowance | 41 | (55) | (169) |
Investment tax credits | (10) | (10) | (3) |
Change in unrecognized income tax benefits | (12) | 9 | 8 |
Foreign tax rate differences | 3 | (1) | (6) |
Deferred tax adjustment from U.S. tax reform | 0 | 0 | 67 |
Non-deductible permanent difference | 15 | 19 | 4 |
Goodwill impairment | 6 | 0 | 0 |
Other differences | 1 | 2 | (9) |
Withholding Tax on Unremitted Earnings | (1) | 0 | 1 |
Provision for (recovery of) income taxes | $ 4 | $ (16) | $ 1 |
Income Taxes - Income (Loss) fr
Income Taxes - Income (Loss) from Continuing Operations Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Income before income taxes: | |||
Canadian | $ 15 | $ 63 | $ 413 |
Foreign | (163) | 14 | (7) |
Income (loss) from continuing operations before income taxes | $ (148) | $ 77 | $ 406 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes from Continuing Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Current | |||
Canadian | $ 2 | $ 2 | $ 1 |
Foreign | 3 | 7 | 7 |
Deferred | |||
Canadian | 0 | 0 | 0 |
Foreign | (1) | (25) | (7) |
Provision for (recovery of) income taxes | $ 4 | $ (16) | $ 1 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Feb. 29, 2020 | Feb. 28, 2019 |
Assets | ||
Property, plant, equipment and intangibles assets | $ 174 | $ 175 |
Non-deductible reserves | 65 | 89 |
Minimum Taxes | 267 | 264 |
Convertible Debentures (see Note 7) | 1 | 15 |
Research and development | 327 | 304 |
Tax loss carryforwards | 419 | 414 |
Other tax carryforwards | 117 | 98 |
Deferred Tax Assets, Gross | 1,370 | 1,359 |
Valuation allowance | 1,223 | 1,192 |
Deferred income tax assets | 147 | 167 |
Liabilities | ||
Property, plant and equipment | (147) | (167) |
Deferred income tax liabilities | 147 | 167 |
Net deferred income tax asset (liability) | 0 | 0 |
Deferred income tax assets | 0 | 2 |
Deferred income tax liabilities | $ 0 | $ 2 |
Income Taxes Income Taxes - Val
Income Taxes Income Taxes - Valuation Allowance (Details) - USD ($) $ in Millions | 12 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
Income Tax Disclosure [Abstract] | ||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ (41) | $ (55) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Beginning and Ending Amount of Unrecognized Income Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized income tax benefits, Beginning balance | $ 84 | $ 73 | $ 65 |
Increase for income tax positions of prior years | 2 | 10 | 4 |
Increase for income tax positions of current year | 1 | 5 | 4 |
Settlement of tax positions | (15) | (4) | 0 |
Unrecognized income tax benefits, Ending balance | $ 72 | $ 84 | $ 73 |
Income Taxes - Summary of Open
Income Taxes - Summary of Open Tax Years by Major Jurisdiction (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Income Tax Examination [Line Items] | |||
Unrecognized Tax Benefits, Income Tax Penalties Accrued | $ 0 | $ 2 | $ 0 |
Minimum | Canada [Member] | |||
Income Tax Examination [Line Items] | |||
Open tax years by major tax jurisdiction | 2011 | ||
Minimum | United States [Member] | |||
Income Tax Examination [Line Items] | |||
Open tax years by major tax jurisdiction | 2017 | ||
Minimum | United Kingdom [Member] | |||
Income Tax Examination [Line Items] | |||
Open tax years by major tax jurisdiction | 2019 | ||
Maximum | Canada [Member] | |||
Income Tax Examination [Line Items] | |||
Open tax years by major tax jurisdiction | 2020 | ||
Maximum | United States [Member] | |||
Income Tax Examination [Line Items] | |||
Open tax years by major tax jurisdiction | 2020 | ||
Maximum | United Kingdom [Member] | |||
Income Tax Examination [Line Items] | |||
Open tax years by major tax jurisdiction | 2020 |
Income Taxes Income Taxes - Sum
Income Taxes Income Taxes - Summary of Net Operating Loss and Tax Credits Carryforwards (Details) - USD ($) $ in Millions | Feb. 29, 2020 | Feb. 28, 2019 |
Tax Credit Carryforward [Line Items] | ||
Operating Loss Carryforwards | $ 1,614 | |
Capital Loss Carryforward | 31 | |
Research and development tax credit | 420 | |
Minimum Taxes | 267 | $ 264 |
Tax Year 2029 | ||
Tax Credit Carryforward [Line Items] | ||
Operating Loss Carryforwards | 10 | |
Capital Loss Carryforward | 0 | |
Research and development tax credit | 0 | |
Minimum Taxes | 0 | |
Tax Year 2030 | ||
Tax Credit Carryforward [Line Items] | ||
Operating Loss Carryforwards | 0 | |
Capital Loss Carryforward | 0 | |
Research and development tax credit | 5 | |
Minimum Taxes | 109 | |
Tax Year 2031 | ||
Tax Credit Carryforward [Line Items] | ||
Operating Loss Carryforwards | 26 | |
Capital Loss Carryforward | 0 | |
Research and development tax credit | 5 | |
Minimum Taxes | 128 | |
Tax Year 2032 | ||
Tax Credit Carryforward [Line Items] | ||
Operating Loss Carryforwards | 78 | |
Capital Loss Carryforward | 0 | |
Research and development tax credit | 3 | |
Minimum Taxes | 27 | |
Tax Year 2033 | ||
Tax Credit Carryforward [Line Items] | ||
Operating Loss Carryforwards | 98 | |
Capital Loss Carryforward | 0 | |
Research and development tax credit | 111 | |
Minimum Taxes | 2 | |
Tax Year 2034 | ||
Tax Credit Carryforward [Line Items] | ||
Operating Loss Carryforwards | 94 | |
Capital Loss Carryforward | 0 | |
Research and development tax credit | 109 | |
Minimum Taxes | 1 | |
Tax Year 2035 | ||
Tax Credit Carryforward [Line Items] | ||
Operating Loss Carryforwards | 11 | |
Capital Loss Carryforward | 0 | |
Research and development tax credit | 51 | |
Minimum Taxes | 0 | |
Tax Year 2036 | ||
Tax Credit Carryforward [Line Items] | ||
Operating Loss Carryforwards | 399 | |
Capital Loss Carryforward | 0 | |
Research and development tax credit | 40 | |
Minimum Taxes | 0 | |
Tax Year 2037 | ||
Tax Credit Carryforward [Line Items] | ||
Operating Loss Carryforwards | 472 | |
Capital Loss Carryforward | 0 | |
Research and development tax credit | 25 | |
Minimum Taxes | 0 | |
Tax Year 2038 | ||
Tax Credit Carryforward [Line Items] | ||
Operating Loss Carryforwards | 185 | |
Capital Loss Carryforward | 0 | |
Research and development tax credit | 19 | |
Minimum Taxes | 0 | |
Tax Year 2039 [Member] | ||
Tax Credit Carryforward [Line Items] | ||
Operating Loss Carryforwards | 0 | |
Capital Loss Carryforward | 0 | |
Research and development tax credit | 18 | |
Minimum Taxes | 0 | |
Tax Year 2040 | ||
Tax Credit Carryforward [Line Items] | ||
Operating Loss Carryforwards | 68 | |
Capital Loss Carryforward | 0 | |
Research and development tax credit | 13 | |
Minimum Taxes | 0 | |
Tax Year, Indefinite | ||
Tax Credit Carryforward [Line Items] | ||
Operating Loss Carryforwards | 173 | |
Capital Loss Carryforward | 31 | |
Research and development tax credit | 21 | |
Minimum Taxes | $ 0 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 |
Income Tax Disclosure [Abstract] | |||
Unrecognized income tax benefit will decrease in the next twelve months | $ 34 | ||
Unrecognized tax benefits netted against deferred income taxes | 59 | ||
Unrecognized tax benefits included within taxes payable | 13 | ||
Accrued interest | 4 | $ 5 | |
Unrecognized Tax Benefits, Income Tax Penalties Accrued | $ 0 | $ 2 | $ 0 |
Debentures (Details)
Debentures (Details) | 12 Months Ended | |||
Feb. 29, 2020USD ($)shares$ / shares | Feb. 28, 2019USD ($)$ / sharesshares | Feb. 28, 2018USD ($)$ / sharesshares | Feb. 28, 2017USD ($) | |
Debt Instrument [Line Items] | ||||
Face amount of debt | $ 605,000,000 | $ 605,000,000 | ||
Interest rate | 3.75% | 3.75% | ||
Conversion of stock (in shares) | shares | 60,500,000 | 60,500,000 | 60,500,000 | |
Conversion price (in dollars per share) | $ / shares | $ 10 | $ 10 | $ 10 | |
Percent of debt holders (not less than) | 25.00% | |||
Redemption period, end date | Nov. 13, 2020 | Nov. 13, 2020 | Nov. 13, 2020 | |
Par value of convertible debentures | $ 1,000 | |||
Convertible debt, number of shares upon conversion (in shares) | shares | 100 | |||
Interest rate in event of default | 7.75% | 7.75% | 7.75% | |
Percentage change of control | 115.00% | 115.00% | 115.00% | |
Ownership percentage by arms length party, common shares | 35.00% | 35.00% | 35.00% | |
Ownership percentage, common shares | 50.00% | 50.00% | 50.00% | |
Short-term debentures | $ 606,000,000 | $ 0 | ||
Long-term debentures (note 7) | 0 | 665,000,000 | $ 782,000,000 | $ 591,000,000 |
Unpaid principal balance | 605,000,000 | |||
Fair Value, Option, Aggregate Differences, Long-term Debt Instruments | (1,000,000) | |||
Debentures fair value adjustment recorded in earnings, income (charge) | 66,000,000 | 117,000,000 | (191,000,000) | |
Debenture fair value adjustment from instrument-specific credit components recorded in other comprehensive income (loss) - income (charge) | (7,000,000) | 0 | 0 | |
Total decrease (increase) in fair value of the debenture | 59,000,000 | 117,000,000 | (191,000,000) | |
Interest expense, debt | 23,000,000 | 24,000,000 | 0 | |
Periodic payment, interest | 6,000,000 | |||
Debt Instrument, Periodic Payment, Interest - Q3 FY21 | 5,000,000 | |||
Related party principal amounts of 3.75% debenture owned | 500,000,000 | |||
Selling Marketing And Administration Expenses | ||||
Debt Instrument [Line Items] | ||||
Interest expense, debt | $ 23,000,000 | $ 24,000,000 | $ 23,000,000 |
Capital Stock - Changes in Issu
Capital Stock - Changes in Issued and Outstanding Common Shares (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | Feb. 21, 2019 | |
Common Stock [Roll Forward] | ||||
Capital stock outstanding, Shares, Beginning Balance | 547,357,972 | |||
Exercised during the year, Number | 1,189,000 | |||
Capital stock outstanding, Shares, Ending Balance | 554,199,016 | 547,357,972 | ||
Common Stock, Amount [Roll Forward] | ||||
Exercise of stock options | $ 3 | $ 1 | $ 4 | |
Stock-based compensation | 63 | 67 | 49 | |
Exchange shares related to Cylance acquisition | 35 | |||
Share repurchases | (18) | |||
Pre-combination service of replacement awards included in purchase consideration | $ 21 | |||
Value Pre-combination service of replacement awards included in purchase consideration | 21 | |||
Employee share purchase plan | $ 6 | $ 4 | $ 4 | |
Capital Stock and Additional Paid-In Capital [Member] | ||||
Common Stock [Roll Forward] | ||||
Capital stock outstanding, Shares, Beginning Balance | 547,358,000 | 536,734,000 | 530,497,000 | |
Exercised during the year, Number | 1,189,000 | 105,000 | 536,000 | |
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 3,361,000 | 10,156,000 | 7,258,000 | |
Stock Repurchased and Retired During Period, Shares | 0 | (1,992,000) | ||
Common shares issued for employee share purchase plan | 911,000 | 363,000 | 435,000 | |
Capital stock outstanding, Shares, Ending Balance | 554,199,000 | 547,358,000 | 536,734,000 | |
Common Stock, Amount [Roll Forward] | ||||
Capital stock outstanding, Value, Beginning Balance | $ (2,688) | $ (2,560) | $ (2,512) | |
Exercise of stock options | 3 | 1 | 4 | |
Stock-based compensation | $ 63 | 67 | 49 | |
Exchange shares related to Cylance acquisition | 35 | |||
Share repurchases | (9) | |||
Value Pre-combination service of replacement awards included in purchase consideration | 21 | |||
Common share issued related to exchange shares | 1,380,000 | |||
Employee share purchase plan | $ 6 | 4 | 4 | |
Capital stock outstanding, Value, Ending Balance | $ (2,760) | $ (2,688) | $ (2,560) |
Capital Stock - Summary of Opti
Capital Stock - Summary of Option Activity (Details) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended |
Feb. 29, 2020USD ($)$ / sharesshares | |
Number (000’s) | |
Options Outstanding, Number, Beginning Balance | shares | 9,014 |
Granted during the year, Number | shares | 0 |
Exercised during the year, Number | shares | (1,189) |
Forfeited/cancelled/expired during the year, Number | shares | (2,120) |
Options Outstanding, Number, Ending Balance | shares | 5,705 |
Stock options vested and expected to Vest, Number | shares | 5,204 |
Exercisable, Number | shares | 3,465 |
Weighted Average Exercise Price | |
Beginning balance (usd per share) | $ / shares | $ 4.21 |
Granted during the year (usd per share) | $ / shares | 0 |
Exercised during the year (usd per share) | $ / shares | 2.80 |
Forfeited/cancelled/expired during the year (usd per share) | $ / shares | 4.47 |
Ending balance (usd per share) | $ / shares | 4.41 |
Vested and expected to vest (usd per share) | $ / shares | 4.35 |
Exercisable (usd per share) | $ / shares | $ 4.04 |
Additional Disclosures [Abstract] | |
Average Remaining Contractual Life in Years | 6 years 10 months 9 days |
Stock options vested and expected to vest, Average Remaining Contractual Life in Years | 6 years 9 months 3 days |
Exercisable, Weighted Average Remaining Contractual Term | 6 years 1 month 24 days |
Aggregate Intrinsic Value | $ | $ 8 |
Stock Options Vested and Expected to Vest, Aggregate Intrinsic Value | $ | 7 |
Exercisable, Aggregate Intrinsic Value | $ | $ 6 |
Capital Stock - Summary of Unve
Capital Stock - Summary of Unvested Stock Options (Details) shares in Thousands | 12 Months Ended |
Feb. 29, 2020$ / sharesshares | |
Number (000’s) | |
Options Outstanding, Number, Beginning Balance | 9,014 |
Granted during the year, Number | 0 |
Options Outstanding, Number, Ending Balance | 5,705 |
Unvested stock options [Member] | |
Number (000’s) | |
Options Outstanding, Number, Beginning Balance | 8,458 |
Vested during the year, Number | (4,317) |
Options Forfeited during the year, Number | (1,901) |
Options Outstanding, Number, Ending Balance | 2,240 |
Weighted Average Exercise Price | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares | $ 5.45 |
Weighted Average Grant Date Fair Value, Vested during the periods (usd per share) | $ / shares | 5.77 |
Weighted Average Grant Date Fair Value, Forfeited during the periods (usd per share) | $ / shares | 5.37 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value, Ending Balance | $ / shares | $ 4.91 |
Capital Stock - Option-Pricing
Capital Stock - Option-Pricing Model Assumptions (Details) - Employee Stock Option [Member] | 12 Months Ended |
Feb. 28, 2019$ / shares | |
Minimum | |
Assumptions: | |
Weighted-average grant date fair value of stock options granted during the periods (usd per share) | $ 3.97 |
Risk-free interest rates | 2.50% |
Expected life in years | 3 years 10 months 28 days |
Volatility | 37.00% |
Maximum | |
Assumptions: | |
Weighted-average grant date fair value of stock options granted during the periods (usd per share) | $ 7.48 |
Risk-free interest rates | 2.56% |
Expected life in years | 6 years 1 month 28 days |
Volatility | 40.00% |
Capital Stock - Restricted Shar
Capital Stock - Restricted Share Unit Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Restricted Share Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee Service Share Based Compensation Tax Deficiencies Realized From Exercise Of Stock Options | $ 0 | $ 0 | $ 0 |
Number of awards granted | 16,902,445 | 14,245,412 | |
Allocated Share-based Compensation Expense | $ 57 | $ 66 | $ 48 |
Number (000’s) | |||
Beginning balance | 17,758,000 | ||
Grants during the period, Number | 16,902,000 | ||
Vested during the period, Number | (3,361,000) | ||
Cancelled during the period, Number | (6,797,000) | ||
Ending balance | 24,502,000 | 17,758,000 | |
Expected to Vest, Outstanding Number | 22,284,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments other than Options, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Beginning balance, Weighted-Average Grant Date Fair Value | $ 9.48 | ||
Granted during the period, Weighted Average Grant Date Fair Value | 7.19 | $ 9.45 | $ 10.84 |
Vested during the period, Weighted-Average Grant Date Fair Value | 9.90 | ||
Cancelled during the period, Weighted-Average Grant Date Fair Value | 9.15 | ||
Ending balance, Weighted-Average Grant Date Fair Value | 7.93 | $ 9.48 | |
Expected to Vest, Weighted Average Grant Date Fair Value | $ 7.88 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |||
Average Remaining Contractual Life in Years | 1 year 7 months 24 days | ||
Aggregate Intrinsic Value | $ 127 | ||
Vested and Expected to Vest, Average Remaining Contractual Life in Years | 1 year 7 months 24 days | ||
Vested and Expected to Vest, Intrinsic Value | $ 115 | ||
Unrecognized compensation expense related to restricted share unit plan | $ 104 | ||
Weighted-average vesting period related to unrecognized share-based compensation on unvested awards | 1 year 10 months 2 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 33 | $ 73 | $ 54 |
Restricted Share Units (RSUs) | |||
Number (000’s) | |||
Cancelled during the period, Number | (3,122,140) | ||
Restricted Share Units (RSUs) | Replacement award [Member] | |||
Number (000’s) | |||
Grants during the period, Number | 824,046 |
Capital Stock - Additional Info
Capital Stock - Additional Information (Details) | 12 Months Ended | ||||||
Feb. 29, 2020USD ($)trancheshares | Feb. 28, 2019USD ($)tranche$ / sharesshares | Feb. 28, 2018USD ($)shares | Mar. 26, 2020shares | Feb. 21, 2019USD ($) | Jun. 23, 2017shares | Feb. 28, 2017shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares in the equity pool available for future grants | shares | 4,000,000 | ||||||
Stock repurchased and charged against retained earnings | $ | $ 9,000,000 | ||||||
Fair value of replacement awards | $ | $ 39,000,000 | ||||||
Pre-combination service of replacement awards included in purchase consideration | $ | $ 21,000,000 | ||||||
Post-combination service of replacement awards | $ | 18,000,000 | ||||||
Post-combination service of replacement awards, unrecognized expense | $ | $ 6,000,000 | 18,000,000 | |||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | shares | 31,000,000 | ||||||
Percentage of Entity Public Float as of May 31, 2017 | 6.40% | ||||||
Stock Repurchased During Period, Shares | shares | 2,000,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date | Nov. 3, 2023 | ||||||
Common shares repurchased | $ | $ 0 | $ 0 | $ 18,000,000 | ||||
Stock Repurchased and Retired During Period, Value | $ | 18,000,000 | ||||||
Common shares or awards outstanding | shares | 554,199,016 | 547,357,972 | |||||
Option vesting period | 4 years | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ | $ 4.30 | $ 2.55 | $ 2.89 | ||||
Conversion of stock (in shares) | shares | 60,500,000 | 60,500,000 | 60,500,000 | ||||
Equity Award, Number Of Vesting Tranches | tranche | 5 | 5 | |||||
Capital Stock and Additional Paid-In Capital [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock Repurchased and Retired During Period, Value | $ | $ 9,000,000 | ||||||
Common shares or awards outstanding | shares | 554,199,000 | 547,358,000 | 536,734,000 | 530,497,000 | |||
Voting Common Stock [Member] | Subsequent Event [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common shares or awards outstanding | shares | 554,000,000 | ||||||
Employee Stock Option [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Allocated Share-based Compensation Expense | $ | $ 5,000,000 | $ 1,000,000 | $ 1,000,000 | ||||
Unrecognized compensation expense related to restricted share unit plan | $ | $ 4,000,000 | ||||||
Weighted-average vesting period related to unrecognized share-based compensation on unvested awards | 1 year 6 months 21 days | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ | $ 25,000,000 | 1,000,000 | 1,000,000 | ||||
Cash received from stock options | $ | 3,000,000 | 1,000,000 | 4,000,000 | ||||
Employee Service Share Based Compensation Tax Deficiencies Realized From Exercise Of Stock Options | $ | $ 0 | $ 0 | $ 0 | ||||
Number of awards granted | shares | 0 | 8,320,130 | 0 | ||||
Option vesting period | 3 years | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 5 years | ||||||
Employee Stock Option [Member] | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Weighted-average grant date fair value of stock options granted during the periods (usd per share) | $ / shares | $ 3.97 | ||||||
Risk-free interest rates | 2.50% | ||||||
Expected life in years | 3 years 10 months 28 days | ||||||
Volatility | 37.00% | ||||||
Employee Stock Option [Member] | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Weighted-average grant date fair value of stock options granted during the periods (usd per share) | $ / shares | $ 7.48 | ||||||
Risk-free interest rates | 2.56% | ||||||
Expected life in years | 6 years 1 month 28 days | ||||||
Volatility | 40.00% | ||||||
Employee Stock Option [Member] | Subsequent Event [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common shares or awards outstanding | shares | 6,000,000 | ||||||
Restricted Share Units (RSUs) | Subsequent Event [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common shares or awards outstanding | shares | 24,000,000 | ||||||
Deferred Share Unit | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Deferred share units issued | shares | 270,164 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | shares | 1,100,000 | 800,000 | |||||
Liability related to deferred share unit plan | $ | $ 6,000,000 | $ 7,000,000 | |||||
Deferred Share Unit | Subsequent Event [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common shares or awards outstanding | shares | 1,000,000 | ||||||
Replacement award [Member] | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Option vesting period | 3 months | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 5 years | ||||||
Replacement award [Member] | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Option vesting period | 4 years | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||||||
Replacement award [Member] | Restricted Share Units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Grants during the period, Number | shares | 824,046 | ||||||
Inducement Awards [Member] | Restricted Share Units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Grants during the period, Number | shares | 4,182,189 |
Capital Stock Capital Stock - 2
Capital Stock Capital Stock - 2019 Executive Chair Incentive Grant (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date | Nov. 3, 2023 | ||
Restricted Share Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee Service Share Based Compensation Tax Deficiencies Realized From Exercise Of Stock Options | $ 0 | $ 0 | $ 0 |
Number of awards granted | 16,902,445 | 14,245,412 | |
Time-based RSU [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, amount to vest annually for each Time-based Tranche | 1,000,000 | ||
Number of awards granted | 5,000,000 | ||
Date of first vest for time-based RSU | Nov. 3, 2019 | ||
Market-condition RSU [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation, amount to vest for each Market Condition Tranche | 1,000,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date | Nov. 3, 2023 | ||
Number of days to calculate average NYSE price | 10 | ||
Market-condition RSU [Member] | Tranche 1 [Domain] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
10-day average closing price on NYSE | $ 16 | ||
Market-condition RSU [Member] | Tranche 2 [Domain] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
10-day average closing price on NYSE | 17 | ||
Market-condition RSU [Member] | Tranche 3 [Domain] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
10-day average closing price on NYSE | 18 | ||
Market-condition RSU [Member] | Tranche 4 [Domain] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
10-day average closing price on NYSE | 19 | ||
Market-condition RSU [Member] | Tranche 5 [Domain] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
10-day average closing price on NYSE | $ 20 | ||
Contingent cash award amount | $ 90 | ||
Contingent cash award [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
10-day average closing price on NYSE | $ 30 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date | Nov. 3, 2023 | ||
Number of days to calculate average NYSE price | 10 | ||
Contingent cash award expense | $ 1 | $ 1 | |
Contingent cash award liability | $ 1 | $ 1 |
Capital Stock- Inducement Award
Capital Stock- Inducement Awards (Details) $ in Millions | 12 Months Ended |
Feb. 29, 2020USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding at the end of the period, Number | 1,060,049 |
Restricted Stock or Unit Expense | $ | $ 3 |
Achievement of billings goal, vest | 75.00% |
Achievement of contribution margin goal, vests | 25.00% |
Share-based Payment Arrangement, Tranche One [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
RSUs eligible to vest | 25.00% |
Share-based Payment Arrangement, Tranche Two [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
RSUs eligible to vest | 35.00% |
Share-based Payment Arrangement, Tranche Three [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
RSUs eligible to vest | 40.00% |
Restricted Share Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Forfeited during the period, Number | 3,122,140 |
Inducement Awards [Member] | Restricted Share Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Grants during the period, Number | 4,182,189 |
Earnings (Loss) Per Share - Sum
Earnings (Loss) Per Share - Summary of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Earnings Per Share [Abstract] | |||
Net income (loss) for basic and diluted earnings (loss) per share available to common shareholders from continuing operations | $ (152) | $ 93 | $ 405 |
Debentures fair value impact on EPS | 66 | 117 | 0 |
Interest expense, debt | 23 | 24 | 0 |
Net Income (Loss) Available to Common Stockholders, Diluted | $ (195) | $ 0 | $ 405 |
Weighted-average number of shares outstanding (000's) - basic and diluted | 553,861,000 | 540,477,000 | 532,888,000 |
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 0 | 11,308,000 | 12,998,000 |
Dilutive Securities, Effect on Basic Earnings Per Share, Dilutive Convertible Securities | 60,500,000 | 60,500,000 | 0 |
Incremental common shares attributable to exchange shares | 0 | 4,182,000 | 0 |
Weighted Average Number of Shares Outstanding, Diluted | 614,361,000 | 616,467,000 | 545,886,000 |
Earnings Per Share, Basic | $ (0.27) | $ 0.17 | $ 0.76 |
Earnings Per Share, Diluted | $ (0.32) | $ 0 | $ 0.74 |
Earnings Per Share [Line Items] | |||
Number of exchanges shares remaining to be issued | 2,802,067 | ||
Employee Stock Option [Member] | |||
Earnings Per Share [Line Items] | |||
Outstanding Options In-the-Money | 8,985,836 | 790,918 | |
Restricted Share Units (RSUs) | |||
Earnings Per Share [Line Items] | |||
Outstanding RSUs In-the-Money | 9,300,191 | 14,068,069 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Feb. 29, 2020 | Feb. 28, 2019 | Mar. 01, 2018 | Feb. 28, 2018 | |
Equity [Abstract] | ||||
Accumulated net unrealized gains on available-for-sale investments | $ 0 | $ 2 | $ (7) | |
Accumulated net unrealized gains (losses) on derivative instruments designated as cash flow hedges | (1) | (1) | ||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | (9) | (7) | (1) | |
Accumulated Other Comprehensive Income (Loss), Financial Liability, Fair Value Option, after Tax | (22) | (14) | 0 | |
Accumulated losses associated with post employment benefits | (1) | (1) | (1) | |
Accumulated other comprehensive income (loss) | (33) | $ (20) | $ (10) | |
Adoption 2016-1 Change in fair value of debenture from instrument-specific credit risk | $ 14 | |||
ASU 2016-1 Adoption - change in fair value equity securities to investment income | $ 8 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Location of Loss Reclassified from AOCI into Income (Details) - USD ($) $ in Millions | 12 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
Selling, marketing and administration [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Gains and Losses on Cash Flow Hedges | $ 0 | $ 3 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ / shares in Units, $ in Millions | 12 Months Ended |
Feb. 29, 2020USD ($)$ / shares | |
Collateral of outstanding letters of credit | $ 42 |
Funds from claim filed with Ministry of Innovation, Science and Economic Development Canada relating to Strategic Innovation Fund Program | 10 |
Executive Chair Grant Liability | 1 |
Executive Chair and CEO [Member] | |
Contingent performance-based cash award | $ 90 |
10-day average closing price for cash award | $ / shares | $ 30 |
Expiry date of contingent performance-based cash award | Nov. 3, 2023 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Feb. 28, 2019 | Feb. 28, 2018 | |
Qualcomm Incorporated | ||
Results of Arbitrations and Legal Proceedings [Line Items] | ||
Proceeds from Legal Settlements | $ 940 | |
Gain (Loss) Related to Litigation Settlement | 962 | |
Litigation Settlement, Amount Awarded from Other Party | 815 | |
Litigation Settlement Interest | 139 | |
Payments for Legal Settlements | 22 | |
Legal Recoveries | 8 | |
Nokia Corporation [Member] | ||
Results of Arbitrations and Legal Proceedings [Line Items] | ||
Litigation Settlement, Amount Awarded to Other Party | 132 | |
Litigation Settlement Interest | 16 | |
Payments for Legal Settlements | $ 148 | |
Panasonic Corporation [Member] | ||
Results of Arbitrations and Legal Proceedings [Line Items] | ||
Gain (Loss) Related to Litigation Settlement | $ 12 | |
Litigation Settlement, Expense | $ 3 |
Leases (Components of Operating
Leases (Components of Operating Lease Expense) (Details) $ in Millions | 12 Months Ended |
Feb. 29, 2020USD ($) | |
Leases [Abstract] | |
Operating Lease, Cost | $ 33 |
Finance Lease, Right-of-Use Asset, Amortization | 2 |
Finance Lease, Interest Expense | 0 |
Finance Lease Cost | $ 2 |
Leases (Supplemental Cash Flow
Leases (Supplemental Cash Flow Information) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Leases [Abstract] | |||
Operating Lease, Payments | $ 40 | ||
Finance Lease, Principal Payments | $ 2 | $ 0 | $ 0 |
Leases (Supplemental Balance Sh
Leases (Supplemental Balance Sheet Information) (Details) - USD ($) $ in Millions | Feb. 29, 2020 | Mar. 01, 2019 | Feb. 28, 2019 |
Leases [Abstract] | |||
Operating lease right-of-use assets, net | $ 124 | $ 161 | $ 0 |
Operating lease liabilities | 120 | 153 | $ 0 |
Operating Lease, Liability, Total | 151 | 189 | |
Finance Lease, Right-of-Use Asset (Cost) | 5 | 8 | |
Finance Lease, Right-Of-Use Asset (Accumulated Amortization) | 4 | 5 | |
Finance Lease, Right-of-Use Asset | 1 | 3 | |
Finance Lease, Liability, Current | 1 | 2 | |
Finance Lease, Liability, Noncurrent | 0 | 1 | |
Finance Lease, Liability, Total | 1 | 3 | |
Accrued Liabilities [Member] | |||
Leases [Abstract] | |||
Operating Lease, Liability, Current | 31 | 36 | |
Lessee, Lease, Description [Line Items] | |||
Operating Lease, Liability, Current | $ 31 | $ 36 |
Leases (Weighted Average Remain
Leases (Weighted Average Remaining Lease term and Discount Rate) (Details) | Feb. 29, 2020 |
Leases [Abstract] | |
Operating Lease, Weighted Average Remaining Lease Term | 5 years 6 months |
Finance Lease, Weighted Average Remaining Lease Term | 1 year 3 months 18 days |
Operating Lease, Weighted Average Discount Rate, Percent | 3.60% |
Finance Lease, Weighted Average Discount Rate, Percent | 2.20% |
Leases (Maturities of Undiscoun
Leases (Maturities of Undiscounted Lease Liabilities) (Details) - USD ($) $ in Millions | Feb. 29, 2020 | Mar. 01, 2019 |
Leases [Abstract] | ||
Lessee, Operating Lease, Liability, Payments, Due Next Twelve Months | $ 36 | |
Lessee, Operating Lease, Liability, Payments, Due Year Two | 34 | |
Lessee, Operating Lease, Liability, Payments, Due Year Three | 28 | |
Lessee, Operating Lease, Liability, Payments, Due Year Four | 22 | |
Lessee, Operating Lease, Liability, Payments, Due Year Five | 17 | |
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 29 | |
Lessee, Operating Lease, Liability, Payments, Due, Total | 166 | |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | 15 | |
Operating Lease, Liability | 151 | $ 189 |
Finance Lease, Liability, Payments, Due Next Twelve Months | 1 | |
Finance Lease, Liability, Payments, Due Year Two | 0 | |
Finance Lease, Liability, Payments, Due Year Three | 0 | |
Finance Lease, Liability, Payments, Due Year Four | 0 | |
Finance Lease, Liability, Payments, Due Year Five | 0 | |
Finance Lease, Liability, Payments, Due after Year Five | 0 | |
Finance Lease, Liability, Payment, Due, Total | 1 | |
Finance Lease, Liability, Undiscounted Excess Amount | 0 | |
Finance Lease, Liability, Total | $ 1 | $ 3 |
Leases (Additional Information)
Leases (Additional Information) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Leases [Abstract] | |||
Lessee, Operating Lease, Renewal Term | 10 years | ||
Lessor, Operating Lease, Option to Terminate | one month | ||
Right-Of-Use Asset Disposal, Cost | $ 18 | ||
Right-of- Use Asset Disposal, Accumulated Amortization | 10 | ||
Right-Of-Use Assets Disposal, Net Book Value | 8 | ||
Impairment of Long-Lived Assets Held-for-use | 10 | $ 0 | $ 11 |
Lessee, Lease, Description [Line Items] | |||
Impairment Of Right of Use Assets | 8 | ||
Lease Obligation Incurred | 1 | ||
Sublease Income | 2 | ||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 1 | ||
Short-term Lease, Cost | $ 2 | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Remaining Lease Term | 8 years | ||
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Remaining Lease Term | 1 year |
Leases (Future Minimum Payments
Leases (Future Minimum Payments - under ASC 84) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Feb. 28, 2019 | Feb. 28, 2018 | |
Leases [Abstract] | ||
2020 | $ 36 | |
2021 | 28 | |
2022 | 27 | |
2023 | 27 | |
2024 | 20 | |
Thereafter | 47 | |
Total | 185 | |
Rental expense incurred | $ 31 | $ 32 |
Revenue and Segment Disclosur_2
Revenue and Segment Disclosures - Revenue from External Customers by Geographic Areas (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Segment Reporting [Abstract] | |||
Number of customers that comprised more than 10% of total revenue | one | one | no |
Segment Reporting Information [Line Items] | |||
Total Revenue | $ 1,040 | $ 904 | $ 932 |
Total Revenue Rate | 100.00% | 100.00% | 100.00% |
North America | |||
Segment Reporting Information [Line Items] | |||
Total Revenue | $ 743 | $ 599 | $ 540 |
Total Revenue Rate | 71.40% | 66.20% | 58.00% |
EMEA | |||
Segment Reporting Information [Line Items] | |||
Total Revenue | $ 221 | $ 222 | $ 278 |
Total Revenue Rate | 21.30% | 24.60% | 29.80% |
Latin America | |||
Segment Reporting Information [Line Items] | |||
Total Revenue | $ 76 | $ 83 | $ 114 |
Total Revenue Rate | 7.30% | 9.20% | 12.20% |
Revenue and Segment Disclosur_3
Revenue and Segment Disclosures - Revenue by Type (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Revenue by Type [Line Items] | |||
Revenues | $ 1,040 | $ 904 | $ 932 |
Licensing [Member] | |||
Revenue by Type [Line Items] | |||
Revenues | 328 | 286 | 196 |
BlackBerry Cylance [Member] | |||
Revenue by Type [Line Items] | |||
Revenues | 151 | 5 | 0 |
Other [Member] | |||
Revenue by Type [Line Items] | |||
Revenues | 21 | 59 | 185 |
Internet Of Things [Member] | |||
Revenue by Type [Line Items] | |||
Revenues | $ 540 | $ 554 | $ 551 |
Revenue and Segment Disclosur_4
Revenue and Segment Disclosures Revenue classified by timing of recognition (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Revenue classified by timing of recognition [Line Items] | |||
Revenues | $ 1,040 | $ 904 | $ 932 |
Transferred over Time [Member] | |||
Revenue classified by timing of recognition [Line Items] | |||
Revenues | 512 | 488 | |
Transferred at Point in Time [Member] | |||
Revenue classified by timing of recognition [Line Items] | |||
Revenues | $ 528 | $ 416 |
Revenue and Segment Disclosur_5
Revenue and Segment Disclosures Revenue Contract Balances (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Revenue Contract Balances [Line Items] | |||
Deferred revenue | $ (18) | $ (36) | $ (44) |
Accounts Receivable [Member] | |||
Revenue Contract Balances [Line Items] | |||
Increase in contract receivable | 761 | ||
Increase in contract receivable from business combination | (746) | ||
Contract with Customer, Asset, Net | 267 | 252 | |
Increase Decrease In Contract with Customer, Asset, Net - Current and Non-Current | 15 | ||
Deferred Revenue [Domain] | |||
Revenue Contract Balances [Line Items] | |||
Deferred Revenue, Additions | 585 | ||
Increase in deferred revenue from business combination | (601) | ||
Deferred revenue | (16) | ||
Deferred Revenue | 373 | 389 | |
Deferred commission [Domain] | |||
Revenue Contract Balances [Line Items] | |||
Increase in deferred commission | 37 | ||
Decrease in deferred commission | (32) | ||
Net change in deferred commission | 5 | ||
Capitalized Contract Cost, Net | $ 28 | $ 23 |
Revenue and Segment Disclosur_6
Revenue and Segment Disclosures -Transaction price allocated to the remaining performance obligations (Details) - USD ($) $ in Millions | 12 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
Transaction price allocated to the remaining performance obligations [Line Items] | ||
Contract with Customer, Performance Obligation Satisfied in Previous Period | $ 1 | $ 11 |
Revenue, Remaining Performance Obligation, Amount | 423 | |
Less than 12 months [Domain] | ||
Transaction price allocated to the remaining performance obligations [Line Items] | ||
Revenue, Remaining Performance Obligation, Amount | 279 | |
12 to 24 months [Domain] | ||
Transaction price allocated to the remaining performance obligations [Line Items] | ||
Revenue, Remaining Performance Obligation, Amount | 101 | |
After 24 months [Domain] | ||
Transaction price allocated to the remaining performance obligations [Line Items] | ||
Revenue, Remaining Performance Obligation, Amount | $ 43 |
Revenue and Segment Disclosur_7
Revenue and Segment Disclosures - Long-lived Assets and Total Assets by Geographic Areas (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Long-lived Assets and Total Assets by Geographic Areas [Line Items] | |||
Long-Lived Assets | $ 2,546 | $ 2,616 | |
Assets | $ 3,888 | $ 3,968 | |
Number of customers that comprised more than 10% of total revenue | one | one | no |
Sales Revenue, Net [Member] | |||
Long-lived Assets and Total Assets by Geographic Areas [Line Items] | |||
Concentration risk, percentage | 13.00% | 10.00% | |
Canada | |||
Long-lived Assets and Total Assets by Geographic Areas [Line Items] | |||
Long-Lived Assets | $ 374 | $ 396 | |
Assets | 657 | 667 | |
United States | |||
Long-lived Assets and Total Assets by Geographic Areas [Line Items] | |||
Long-Lived Assets | 2,132 | 2,178 | |
Assets | 3,071 | 3,099 | |
Other Countries | |||
Long-lived Assets and Total Assets by Geographic Areas [Line Items] | |||
Long-Lived Assets | 40 | 42 | |
Assets | $ 160 | $ 202 |
Revenue and Segment Disclosur_8
Revenue and Segment Disclosures - Additional Details (Details) - USD ($) $ in Millions | 12 Months Ended | |
Feb. 29, 2020 | Feb. 28, 2019 | |
Segment Reporting [Abstract] | ||
Contract with Customer, Performance Obligation Satisfied in Previous Period | $ 1 | $ 11 |
Cash Flow and Additional Info_3
Cash Flow and Additional Information - Interest and Income Taxes Paid (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Supplemental Cash Flow Information [Abstract] | |||
Interest paid during the year | $ 23 | $ 24 | $ 39 |
Income taxes paid during the year | 8 | 6 | 6 |
Proceeds from Income Tax Refunds | $ 9 | $ 15 | $ 7 |
Cash Flow and Additional Info_4
Cash Flow and Additional Information - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | |
Supplemental Cash Flow Information [Abstract] | |||
Advertising expense | $ 39 | $ 22 | $ 23 |
Foreign exchange gains (losses) | $ 0 | $ 2 | $ 0 |
Percentage of cash and cash equivalents denominated in foreign currencies | 12.00% | 9.00% | |
Percentage of accounts receivable denominated in foreign currencies | 17.00% | 29.00% | |
Percentage of accounts payable denominated in foreign currencies | 17.00% | 4.00% | |
Interest rate | 3.75% | 3.75% | |
Cash, Cash Equivalents And Investments | $ 990 | $ 1,005 | |
Percentage of cash, cash equivalents and investments threshold used to determine major issuer | 8.00% | 16.00% | |
Derivative asset, fair value of collateral | $ 1 | $ 0 |