Cover
Cover - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 29, 2024 | Apr. 01, 2024 | Aug. 31, 2023 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Feb. 29, 2024 | ||
Document Transition Report | false | ||
Entity File Number | 001-38232 | ||
Entity Registrant Name | BlackBerry Limited | ||
Entity Incorporation, State or Country Code | Z4 | ||
Entity Tax Identification Number | 98-0164408 | ||
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 | ||
Entity Address, Postal Zip Code | N2K 0A7 | ||
City Area Code | (519) | ||
Local Phone Number | 888-7465 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3,200 | ||
Entity Common Stock, Shares Outstanding | 589,233,606 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2024 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001070235 | ||
Current Fiscal Year End Date | --02-29 | ||
Documents Incorporated by Reference | Portions of the registrant’s proxy statement for its 2024 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 after the registrant’s fiscal year ended February 29, 2024. | ||
NEW YORK STOCK EXCHANGE, INC. [Member] | |||
Document Information [Line Items] | |||
Title of 12(g) Security | Common Shares | ||
Trading Symbol | BB | ||
Security Exchange Name | NYSE |
Auditor Information
Auditor Information | 12 Months Ended |
Feb. 29, 2024 | |
Cover [Abstract] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Toronto, Canada |
Auditor Firm ID | 271 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Feb. 29, 2024 | Feb. 28, 2023 |
Current | ||
Cash and cash equivalents (note 3) | $ 175 | $ 295 |
Short-term Investments | 62 | 131 |
Accounts receivable, net of allowance of $6 and $1, respectively (note 4 and note 12) | 199 | 120 |
Other receivables (note 4) | 21 | 12 |
Income taxes receivable | 4 | 3 |
Other current assets (note 4) | 47 | 182 |
Total current assets | 508 | 743 |
Restricted cash and cash equivalents (note 3) | 25 | 27 |
Long-term investments | 36 | 34 |
Other long-term assets (note 4) | 57 | 8 |
Operating lease right-of-use assets, net | 32 | 44 |
Property, plant and equipment, net (note 4) | 21 | 25 |
Intangible assets, net (note 3 and note 4) | 154 | 203 |
Goodwill (note 3 and note 4) | 562 | 595 |
Total assets | 1,395 | 1,679 |
Current | ||
Accounts payable | 17 | 24 |
Accrued liabilities (note 4) | 117 | 143 |
Income taxes payable (note 5) | 28 | 20 |
Short-term debentures | 0 | 367 |
Deferred revenue, current (note 12) | 194 | 175 |
Total current liabilities | 356 | 729 |
Deferred revenue, non-current | 28 | 40 |
Operating lease liabilities | 38 | 52 |
Other long-term liabilities | 3 | 1 |
Long-term notes (note 6) | 194 | 0 |
Total liabilities | 619 | 822 |
Capital stock and additional paid-in capital | ||
Preferred shares: authorized unlimited number of non-voting, cumulative, redeemable and retractable | 0 | 0 |
Issued and outstanding - 589,232,539 voting common shares (February 28, 2023 - 582,157,203) | 2,948 | 2,909 |
Deficit | (2,158) | (2,028) |
Accumulated other comprehensive income (loss) | (14) | (24) |
Total shareholders' equity | 776 | 857 |
Total liabilities and shareholders' equity | $ 1,395 | $ 1,679 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Feb. 29, 2024 | Feb. 28, 2023 |
Statement of Financial Position [Abstract] | ||
Accounts Receivable, Allowance for Credit Loss | $ 6 | $ 1 |
Common Stock, Shares, Issued | 589,232,539 | 582,157,203 |
Common Stock, Shares, Outstanding | 589,232,539 | 582,157,203 |
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, 2021 | $ 1,504 | $ 2,823 | $ (1,306) | $ (13) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | 12 | 12 | ||
Other comprehensive income (loss) | (6) | (6) | ||
Stock-based compensation | 36 | 36 | ||
Shares issued: | ||||
Exercise of stock options | 3 | 3 | ||
Employee share purchase plan | 7 | 7 | ||
Ending Balance at Feb. 28, 2022 | 1,556 | 2,869 | (1,294) | (19) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | (734) | (734) | ||
Other comprehensive income (loss) | (5) | (5) | ||
Stock-based compensation | 34 | 34 | ||
Shares issued: | ||||
Exercise of stock options | 0 | |||
Employee share purchase plan | 6 | 6 | ||
Ending Balance at Feb. 28, 2023 | 857 | 2,909 | (2,028) | (24) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | (130) | (130) | ||
Other comprehensive income (loss) | 10 | 10 | ||
Stock-based compensation | 33 | 33 | ||
Shares issued: | ||||
Exercise of stock options | 0 | |||
Employee share purchase plan | 5 | 5 | ||
Deferred Shared Unit | 1 | 1 | ||
Ending Balance at Feb. 29, 2024 | $ 776 | $ 2,948 | $ (2,158) | $ (14) |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 28, 2022 | |
Revenue | |||
Revenues | $ 853 | $ 656 | $ 718 |
Cost of sales | |||
Cost of Revenue | (333) | (237) | (251) |
Gross margin | 520 | 419 | 467 |
Operating expenses | |||
Research and development | 186 | 207 | 219 |
Sales and marketing | 171 | 176 | 183 |
General and administrative | 181 | 164 | 114 |
Amortization | 54 | 96 | 165 |
Impairment of goodwill | 35 | 245 | 0 |
Impairment of long-lived assets (note 3) | 15 | 235 | 0 |
Gain on sale of property, plant and equipment, net (note 4) | 0 | (6) | 0 |
Debentures fair value adjustment | 3 | (138) | (212) |
Litigation Settlement, Expense | 0 | 165 | 0 |
Total operating expenses | 645 | 1,144 | 469 |
Operating loss | (125) | (725) | (2) |
Investment income, net (note 3 and note 6) | 19 | 5 | 21 |
Income (loss) before income taxes | (106) | (720) | 19 |
Provision for income taxes (note 5) | 24 | 14 | 7 |
Net income (loss) | $ (130) | $ (734) | $ 12 |
Earnings (loss) per share (note 8) | |||
Earnings Per Share, Basic | $ (0.22) | $ (1.27) | $ 0.02 |
Earnings Per Share, Diluted | $ (0.22) | $ (1.35) | $ (0.31) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 28, 2022 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ (130) | $ (734) | $ 12 |
Other comprehensive income (loss) | |||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, after Tax | 1 | (1) | (1) |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 2 | (6) | (6) |
Actuarial gains associated with other post-employment benefit obligations | 1 | 0 | 0 |
Other Comprehensive Income (Loss), Financial Liability, Fair Value Option, Unrealized Gain (Loss) Arising During Period, after Tax | 6 | 2 | 1 |
Other comprehensive income (loss) | 10 | (5) | (6) |
Comprehensive income (loss) | $ (120) | $ (739) | $ 6 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 28, 2022 | |
Statement of Comprehensive Income [Abstract] | |||
Income tax expense, net | $ 0 | $ 0 | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 28, 2022 | |
Cash flows from operating activities | |||
Net income (loss) | $ (130) | $ (734) | $ 12 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Amortization | 59 | 105 | 176 |
Stock-based compensation | 33 | 34 | 36 |
Gain on sale of investment (note 3) | 0 | 0 | (22) |
Impairment of goodwill | 35 | 245 | 0 |
Impairment of long-lived assets (note 3) | 15 | 235 | 0 |
Intellectual property disposed of by sale | 147 | 0 | 0 |
Gain on sale of property, plant and equipment, net (note 4) | 0 | (6) | 0 |
Debentures fair value adjustment | 3 | (138) | (212) |
Operating leases | (13) | (16) | (16) |
Other | 3 | 5 | (3) |
Net changes in working capital items | |||
Accounts receivable, net of allowance | (79) | 18 | 44 |
Other receivables | (9) | 13 | 0 |
Income taxes receivable | (1) | 6 | 1 |
Other assets | (53) | (1) | 15 |
Accounts payable | (7) | 2 | 2 |
Accrued liabilities | (21) | (11) | (16) |
Income taxes payable | 8 | 9 | 5 |
Deferred revenue | 7 | (29) | (50) |
Net cash used in operating activities | (3) | (263) | (28) |
Cash flows from investing activities | |||
Acquisition of long-term investments | (2) | (3) | (1) |
Proceeds on sale, maturity or distribution from long-term investments | 0 | 0 | 35 |
Acquisition of property, plant and equipment | (7) | (7) | (8) |
Proceeds on sale of property, plant and equipment (note 4) | 0 | 17 | 0 |
Acquisition of intangible assets | (14) | (34) | (31) |
Acquisition of short-term investments | (154) | (514) | (916) |
Proceeds on sale or maturity of restricted short-term investments | 0 | 0 | 24 |
Proceeds on sale or maturity of short-term investments | 223 | 717 | 1,104 |
Net cash provided by investing activities | 46 | 176 | 207 |
Cash flows from financing activities | |||
Issuance of common shares | 6 | 6 | 10 |
Repayments of Debt | (515) | 0 | 0 |
Proceeds from issuance of Extension Debentures and Notes, net (note 6) | 344 | 0 | 0 |
Net cash provided by (used in) financing activities | (165) | 6 | 10 |
Effect of foreign exchange loss on cash, cash equivalents, restricted cash, and restricted cash equivalents | 0 | (3) | (1) |
Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents during the period | (122) | (84) | 188 |
Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of period | 322 | 406 | 218 |
Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period | $ 200 | $ 322 | $ 406 |
Blackberry Limited and Summary
Blackberry Limited and Summary of Significant Accounting Policies and Critical Accounting Estimates | 12 Months Ended |
Feb. 29, 2024 | |
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 235 million vehicles. Based in Waterloo, Ontario, the Company leverages artificial intelligence (“AI”) and machine learning to deliver innovative solutions in the areas of cybersecurity, safety and data privacy, and is a leader in the areas of endpoint security, endpoint 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 is organized and managed as three reportable operating segments: Cybersecurity, IoT (collectively, “Software & Services”), and Licensing and Other, as further discussed in Note 12. Risks and Uncertainties In fiscal 2024, assumptions and estimates about future cash flows, economic uncertainty, customer budgetary constraints, auto industry labor disruptions and inflation, development timelines for automotive OEM embedded software platforms, as well as higher interest rates implemented in response to inflation and resulting fears of recession, resulted in the Company making significant judgments related to its estimates and assumptions concerning the impairment of goodwill, indefinite-lived intangible assets, certain operating lease right-of-use (“ROU”) assets and associated property, plant and equipment. As of the date of issuance of the financial statements, the Company is not aware of any additional events or circumstances which would require it to update its estimates, judgments, or revise the carrying value of its assets or liabilities. These estimates may change, as new events occur and additional information is obtained, and such changes will be recognized in the consolidated financial statements as soon as they become known. Actual results could differ from these estimates and any such differences may be material to the Company’s financial statements. 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, right of return and customer incentive commitments, fair value of reporting units in relation to actual or potential goodwill impairment, fair value of the Debentures (as defined in Note 6), fair value of share-based liability awards, fair value of long-lived assets in relation to actual or potential impairment, the Company’s long-lived asset groupings, estimated useful lives of property, plant and equipment and intangible assets, provision (or recovery) of income taxes, realization of deferred income tax assets and the related components of the valuation allowance, allowance for credit losses, incremental borrowing rates 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, 2024. 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 subsidiary is 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 the translation of foreign currency denominated assets and liabilities are included as a currency translation adjustment within accumulated other comprehensive loss (“AOCL”). Cash and cash equivalents Cash and cash equivalents consist of balances with banks and liquid investments with maturities of three Accounts receivable, net of allowance The accounts receivable balance reflects invoiced and accrued revenue and is presented net of an allowance for credit losses. 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 other distribution partners, rather than directly to end users. The Company establishes current expected credit losses (“CECL”) for pools of assets with similar risk characteristics by evaluating historical levels of credit losses, current economic conditions that may affect a customer’s ability to pay, and creditworthiness of significant customers. When specific customers are identified as no longer sharing the same risk profile as their current pool, they are removed from the pool and evaluated separately. 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 credit loss 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 non-marketable 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 AOCL 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. 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 non-marketable 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 non-marketable 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 Allowance for Credit Losses on Available-for-sale Debt Securities At each reporting period, the Company evaluates its available-for-sale debt securities at the individual security level to determine whether there is a decline in the fair value below its amortized cost basis (an impairment). In circumstances where the Company intends to sell, or is more likely than not required to sell, the security before it recovers its amortized cost basis, the difference between fair value and amortized cost is recognized as a loss in the consolidated statement of operations, with a corresponding write-down of the security’s amortized cost. In circumstances where neither condition exists, the Company then evaluates whether a decline is due to credit-related factors. The factors considered in determining whether a credit loss exists can include the extent to which fair value is less than the amortized cost basis, changes in the credit quality of the underlying issuer, credit ratings actions, as well as other factors. To determine the portion of a decline in fair value that is credit-related, the Company compares the present value of the expected cash flows of the security discounted at the security’s effective interest rate to the amortized cost basis of the security. A credit-related impairment is limited to the difference between fair value and amortized cost, and recognized as an allowance for credit loss on the consolidated balance sheet with a corresponding adjustment to net income. Any remaining decline in fair value that is non-credit related is recognized in other comprehensive income (loss), net of tax. Improvements in expected cash flows due to improvements in credit are recognized through reversal of the credit loss and corresponding reduction in the allowance for credit loss. Derivative financial instruments 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 derivative’s gain or loss is initially reported as a component of AOCL, net of tax, and subsequently reclassified into income in the same period or periods in which the hedged item affects 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 AOCL 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 impact to income as a result of 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 and impairment. Amortization is provided using the following rates and methods: Leasehold improvements and other Straight-line over terms between 5 and 15 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 30% per annum For amortization on ROU assets, see the Company’s accounting policy on leases below and Note 11 for the remaining lease terms of leases. Leases Operating lease 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 the commencement date, the Company recognizes the lease payments as lease cost on a straight-line basis over the lease term. See Note 11 for additional information related to the Company’s leases. 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. In the annual impairment test, the carrying value 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 using a discounted future cash flow model, market-based approaches, 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 rates of revenue growth for the Company’s reporting units, estimation of the useful life over which cash flows will occur, terminal growth rates, profitability measures, and determination of the discount rates for the reporting units. The carrying value of the Company’s assets was assigned to reporting units using reasonable methodologies based on the asset type. When the carrying value of a reporting unit exceeds its fair value, goodwill of the reporting unit is considered to be impaired and written down to its fair value. Different judgments could yield different results. Intangible assets Intangible assets with definite lives are stated at cost, less accumulated amortization and impairment. Amortization is provided on a straight-line basis over the following terms: Acquired technology Between 3 and 10 years Intellectual property Between 1 and 25 years Other acquired intangibles Between 2 and 10 years Acquired technology consists of intangible assets acquired through business acquisitions. Intellectual property consists of patents (including purchased and internally generated patents and maintenance fees). 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, intangible assets with finite useful lives and ROU assets for impairment whenever events or changes in circumstances indicate that the carrying value 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 value of its net assets. If the net cash flows of the asset group exceed the carrying value of its net assets, LLA are not considered to be impaired. If the carrying value 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 value of the asset group’s net assets exceeds its fair value, then the excess represents the maximum amount of potential impairment that will be allocated to LLA in 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. Convertible debentures The Company has recognized the Notes (as defined in Note 6) as a single liability instrument measured at amortized cost. Debt issuance costs related to the Notes have been recorded as a direct deduction from the face amount of the Notes and will be amortized using the effective interest method. The Company elected to measure its Extension Debentures (as defined in Note 6) and 2020 Debentures (as defined in Note 6) at fair value in accordance with the fair value option. Each period, the fair value of the Extension Debentures and 2020 Debentures was recalculated and resulting gains and losses from the change in fair value of the Extension Debentures and 2020 Debentures associated with non-credit components were recognized in income, while the change in fair value associated with credit components were recognized in AOCL. Extension Debentures The fair value of the Extension Debentures was determined using the significant inputs of principal value, interest rate spreads and curves, and the market price and volatility of the Company’s common shares. 2020 Debentures The fair value of the 2020 Debentures was determined using the significant inputs of principal value, interest rate spreads and curves, any observable trades of the 2020 Debentures that occurred during the period, the market price and volatility of the Company’s common shares, and the significant Level 3 inputs related to credit spread and the implied discount of the 2020 Debentures at issuance. Revenue recognition 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. 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 The Company is organized and managed as three operating segments. The Company has multiple products and services from which it derives revenue, which are structured in three groups: Cybersecurity, IoT and Licensing and Other. Cybersecurity Cybersecurity includes revenue from Cylance® cybersecurity and BlackBerry unified endpoint management (“UEM”) solutions (collectively, BlackBerry Spark®), BlackBerry® AtHoc® and SecuSUITE®. Cybersecurity revenue is generated predominantly through software licenses, commonly bundled with support, maintenance and professional services. Cylance Cybersecurity The BlackBerry Spark platform is a comprehensive offering of security software products and services, including the Cylance cybersecurity solutions and BlackBerry Unified Endpoint Management, offering the Company’s broadest range of tailored cybersecurity and endpoint management options. The Cylance cybersecurity solutions include revenue from the Company’s artificial intelligence and machine learning-based platform consisting of CylanceENDPOINT™, CylanceGUARD®, CylanceEDGE™, CylanceINTELLIGENCE™ and other cybersecurity applications. The Company generates software license revenue from term subscription products, which includes technical support, and any updates and upgrades. 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. BlackBerry UEM The Company’s endpoint management platform includes BlackBerry® UEM, BlackBerry® Dynamics™ and BlackBerry® Workspaces solutions (which are often sold together as part of the BlackBerry UEM Suite), and BlackBerry Messenger (BBM®) Enterprise. 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 SecuSUITE SecuSUITE revenue is generated from software license products associated with secure communications and the associated hardware. Similar to the Cylance cybersecurity and BlackBerry UEM products, if the licensed software requires access to the Company’s proprietary secure network infrastructure, revenue from the contract is recognized over time, ratably over the expected term or over the customer life, if licensed on a perpetual basis. If access to the Company’s proprietary network infrastructure is not required, revenue associated with the license is recognized at a point in time upon delivery of the software. Revenue from the hardware is recognized once title and the significant risks and rewards of ownership of the products are transferred to the customer, which occurs after the product has shipped. BlackBerry AtHoc BlackBerry AtHoc generates revenue from networked critical event management solutions through perpetual and term subscriptions which include technical support, as well as associated professional services. The licensed software in most contracts requires access to the Company’s proprietary secure network infrastructure in order to function, specifically through AtHoc’s secure platform which is included within the Company’s data center. 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. IoT IoT consists of BlackBerry Technology Solutions, BlackBerry Radar® and BlackBerry IVY™. BlackBerry Technology Solutions includes revenue from BlackBerry® QNX®, BlackBerry Certicom® and other IoT applications. IoT revenue is generated predominantly through software licenses, commonly bundled with support, maintenance and professional services. 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 digital cockpit 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 shipped by the customer, 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 Licensing and Other Licensing and Other includes revenue from the Company’s intellectual property licensing arrangements and settlement awards. Other revenue consists of revenue associated with the Company’s legacy service access fees (“SAF”) business. 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 contains distinct performance obligations with standalone functionality and whether the Company is the principal or agent in the transaction. Significant judgment is applie |
Adoption of Accounting Policies
Adoption of Accounting Policies | 12 Months Ended |
Feb. 29, 2024 | |
Accounting Policies [Abstract] | |
Adoption of Accounting Policies | ADOPTION OF ACCOUNTING POLICIES Accounting Standards Adopted During Fiscal 2024 The Company did not adopt any accounting standards during fiscal 2024 . Accounting Pronouncements Not Yet Adopted In November 2023, the Financial Accounting Standards Board (the “FASB”) issued ASU 2023-07 on the topic of segment reporting. The standard requires additional disclosures for segment reporting. These requirements include: (i) disclosure of significant expenses that are regularly provided to the Chief Operating Decision Maker (“CODM”) and included within each reported measure of segment profit or loss (collectively referred to as the “significant expense principle”); (ii) disclosure of an amount for other segment items (equal to the difference between segment revenue less segment expenses disclosed under the significant expense principle and each reported measure of segment profit or loss) by reportable segment and a description of their composition; (iii) annual disclosure of a reportable segment’s profit or loss and assets currently required by Topic 280 in interim periods; (iv) clarification that, if the CODM uses more than one measure of a segment's profit or loss in assessing segment performance and deciding how to allocate resources, a public entity may report those additional measures of segment profit or loss; (v) disclosure of the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources; (vi) requiring a public entity that has a single reportable segment provide all the disclosures required by the amendments in this ASU, and all existing segment disclosures in Topic 280. The guidance is effective for annual periods beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The Company will adopt this guidance in fiscal 2025 and is in the process of evaluating the new requirements. As a result, the Company has not yet determined the impact this new ASU will have on its disclosures. In December 2023, the FASB issued ASU 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” on the topic of income taxes. The standard requires additional disclosure for income taxes. These requirements include: (i) requiring a public entity to disclose specific categories in the rate reconciliation; (ii) disclosure of additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5% of the amount computed by multiplying pretax income or loss by the applicable statutory income tax rate); (iii) annual disclosure of the amount of income taxes paid (net of refunds received) disaggregated by federal (national), state, and foreign taxes; (iv) annual disclosure of the amount of income taxes paid (net of refunds received) disaggregated by individual jurisdictions in which income taxes paid (net of refunds received) is equal to or greater than 5% of total income taxes paid (net of refunds received); (v) annual disclosure of income (or loss) from continuing operations before income tax expense (or benefit) disaggregated between domestic and foreign; and (vi) annual disclosure of income tax expense (or benefit) from continuing operations disaggregated by federal (national), state, and foreign. For public entities, the guidance is effective for annual periods beginning after December 15, 2024. The Company will adopt this guidance in fiscal 2026 and is in the process of evaluating the new requirements. As a result, the Company has not yet determined the impact this new ASU will have on its disclosures. |
Fair Value Measurements, Cash,
Fair Value Measurements, Cash, Cash Equivalents and Investments | 12 Months Ended |
Feb. 29, 2024 | |
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. The Company’s cash and cash equivalents, accounts receivable, other receivables, accounts payable and accrued liabilities are carried at amounts that approximate their fair values (Level 2 measurement) due to their short maturities. Recurring Fair Value Measurements In determining the fair value of investments held, 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. For a description of how the fair values of the Extension Debentures and 2020 Debentures were determined, see the “Convertible debentures” accounting policies in Note 1. The Extension Debentures are classified as Level 2 and the 2020 Debentures are classified as Level 3. Non-Recurring Fair Value Measurements Upon the occurrence of certain events, the Company re-measures the fair value of non-marketable equity investments for which it utilizes the measurement alternative, and long-lived assets, including property, plant and equipment, operating lease ROU assets, intangible assets and goodwill if an impairment or observable price adjustment is recognized in the current period. Non-Marketable Equity Investments Measured Using the Measurement Alternative Non-marketable equity investments measured using the measurement alternative include investments in privately held companies without readily determinable fair values in which the Company does not own a controlling interest or have significant influence. The estimation of fair value used in the fair value measurements required the use of significant unobservable inputs, and as a result, the fair value measurements were classified as Level 3. Goodwill Impairment During the fourth quarter of fiscal 2024, as part of its process for setting the annual operating plan for fiscal 2025, the Company updated its estimates of long-term future cash flows to reflect lower revenue and EBITDA growth rate expectations and a reduction in revenue multiples used in the valuation of the BlackBerry Spark reporting unit. These changes in estimates, combined with the continued global economic uncertainty, customer budgetary constraints, and inflation, as well as higher interest rates implemented in response to inflation, and a broad-based stock market decline impacting the Company’s market capitalization, resulted in the recognition of a goodwill impairment charge of $35 million in the BlackBerry Spark reporting unit, which is included within the Company’s Cybersecurity segment as disclosed in Note 12. Based on the results of the annual goodwill impairment test for the BlackBerry Spark reporting unit, based on the income approach using a discounted future cash flow model and market-based approaches, it was concluded that the carrying value exceeded its fair value, necessitating an impairment charge for the amount of excess and reducing the carrying value of goodwill. The estimated fair values of the Company’s other reporting units substantially exceeded their carrying values as at the annual goodwill impairment test date, with the exception of the Intellectual Property reporting unit. Assumptions and estimates about future cash flows and discount rates are complex and often subjective and require significant judgement. The analysis is dependent on internal forecasts, estimation of the long-term rates of revenue growth for the Company’s reporting units, estimation of the useful life over which cash flows will occur, terminal growth rates, profitability measures, and determination of the discount rates for the reporting units. During the year ended February 28, 2023, the Company recorded a goodwill impairment charge of $245 million in the BlackBerry Spark reporting unit, which is included within the Company’s Cybersecurity segment as disclosed in Note 12. The estimated fair values of the Company’s other reporting units substantially exceeded their carrying values as at the annual goodwill impairment test date. During the year ended February 28, 2022, there were no goodwill impairment charges. In its annual goodwill impairment test in the fourth quarter of fiscal 2022, the Company’s estimates indicated the fair values of all its reporting units substantially exceeded their carrying values, such carrying values were expected to be recovered, and there was no goodwill impairment. Impairment of Long-Lived Assets (“LLA”) During the year ended February 29, 2024, the Company exited certain leased facilities and recorded a pre-tax and after-tax impairment charge of $7 million, related to the ROU assets for those facilities. The impairment was determined by comparing the fair value of the impacted ROU asset to the carrying value of the asset as of the impairment measurement date, as required under ASC Topic 360, Property, Plant, and Equipment, using Level 3 inputs. The fair value of the ROU asset was based on the estimated sublease income for certain facilities taking into consideration the estimated time period it will take to obtain a sublessor, the applicable discount rate and the sublease rate, which are considered unobservable inputs. The Company conducts an evaluation of the related liabilities and expenses and revises its assumptions and estimates as appropriate as new or updated information becomes available. These ROU impaired assets are classified within Level 3 of the fair value hierarchy. The Company conducts regular reviews of the individual patents, both organically generated and acquired, comprising its patent portfolio. As a result of this review, for the year ended February 29, 2024, the Company determined it had an indicator of impairment, as it had ceased enforcement and abandoned the legal right and title to patents with a cost of $15 million, accumulated amortization of $7 million, and a net book value of $8 million, which is classified as an impairment of long-lived assets on the Company’s consolidated statements of operations. During the year ended February 28, 2023, the Company recorded a non-cash, pre-tax and after-tax impairment charge of $235 million consisting of $231 million related to the Company’s UES asset group, which is primarily composed of intangible assets recognized on the acquisition of Cylance and is included within the Company’s Cybersecurity segment as disclosed in Note 12 and $4 million related to operating lease ROU assets for certain leased facilities that were exited during the fiscal year. None of the Company’s other asset groups demonstrated indicators of potential impairment. During the year ended February 28, 2022, there were no LLA impairment charges. Cash, Cash Equivalents and Investments The components of cash, cash equivalents and investments by fair value level as at February 29, 2024 were as follows: Cost Basis (1) Unrealized Unrealized Fair Value Cash and Short-term Long-term Restricted Cash and Cash Equivalents Bank balances $ 96 $ — $ — $ 96 $ 96 $ — $ — $ — Other investments 30 6 — 36 — — 36 — 126 6 — 132 96 — 36 — Level 1: Equity securities 10 — (10) — — — — — Level 2: Term deposits, and certificates of deposits 21 — — 21 — — — 21 Bearer deposit notes 53 — — 53 28 25 — — Commercial paper 47 — — 47 15 32 — — Non-U.S. promissory notes 35 — — 35 30 5 — — U.S. treasury bills 10 — — 10 6 — — 4 166 — — 166 79 62 — 25 $ 302 $ 6 $ (10) $ 298 $ 175 $ 62 $ 36 $ 25 ______________________________ (1) Cost basis for other investments includes the effect of returns of capital and impairment. The components of cash, cash equivalents and investments by fair value level as at February 28, 2023 were as follows: Cost Basis (1) Unrealized Unrealized Fair Value Cash and Short-term Long-term Restricted Cash and Cash Equivalents Bank balances $ 89 $ — $ — $ 89 $ 87 $ — $ — $ 2 Other investments 26 2 — 28 — — 28 — 115 2 — 117 87 — 28 2 Level 1: Equity securities 10 — (10) — — — — — Level 2: Term deposits, and certificates of deposits 33 — — 33 8 — — 25 Bearer deposit notes 82 — — 82 82 — — — Commercial paper 159 — — 159 108 51 — — Non-U.S. promissory notes 45 — — 45 — 45 — — Non-U.S. government sponsored enterprise notes 30 — — 30 10 20 — — Corporate notes/bonds 15 — — 15 — 15 — — 364 — — 364 208 131 — 25 Level 3: Other investments 2 4 — 6 — — 6 — $ 491 $ 6 $ (10) $ 487 $ 295 $ 131 $ 34 $ 27 ______________________________ (1) Cost basis for other investments includes the effect of returns of capital and impairment. As at February 29, 2024, the Company had non-marketable equity investments without readily determinable fair value of $36 million (February 28, 2023 - $34 million). During the year ended February 29, 2024, there was no impairment recognized relating to non-marketable equity investments without readily determinable fair value (February 28, 2023 and February 28, 2022 - nil). As of February 29, 2024, the Company has recorded a cumulative impairment of $3 million to the carrying value of certain other non-marketable equity investments without readily determinable fair value (February 28, 2023 - $3 million). During the year ended February 28, 2022, the Company received a distribution from a non-marketable equity investment without readily determinable fair value in the amount of $35 million, which for accounting purposes, consisted of a return of capital of $13 million and a realized gain of $22 million included in investment income, net on the Company’s consolidated statements of operations. There were no realized gains or losses on available-for-sale securities for the year ended February 29, 2024 (February 28, 2023 and February 28, 2022 - nil). 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. The letters of credit are for terms ranging from one two The following table provides a reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents as at February 29, 2024, February 28, 2023 and February 28, 2022 from the consolidated balance sheets to the consolidated statements of cash flows: As at February 29, 2024 February 28, 2023 February 28, 2022 Cash and cash equivalents $ 175 $ 295 $ 378 Restricted cash and cash equivalents 25 27 28 Total cash, cash equivalents, restricted cash, and restricted cash equivalents presented in the consolidated statements of cash flows $ 200 $ 322 $ 406 The contractual maturities of available-for-sale investments as at February 29, 2024 and February 28, 2023 were as follows: As at February 29, 2024 February 28, 2023 Cost Basis Fair Value Cost Basis Fair Value Due in one year or less $ 166 $ 166 $ 364 $ 364 No fixed maturity 10 — 10 — $ 176 $ 166 $ 374 $ 364 |
Consolidated Balance Sheets Det
Consolidated Balance Sheets Details | 12 Months Ended |
Feb. 29, 2024 | |
Balance Sheet Related Disclosures [Abstract] | |
Consolidated Balance Sheet Details | CONSOLIDATED BALANCE SHEET DETAILS Accounts Receivable, Net of Allowance The allowance for credit losses as at February 29, 2024 was $6 million (February 28, 2023 - $1 million). The Company recognizes current estimated credit losses (“CECL”) for accounts receivable. The CECL for accounts receivable are estimated based on days past due and region for each customer in relation to a representative pool of assets consisting of a large number of customers with similar risk characteristics that operate under similar economic environments. The Company determined the CECL by estimating historical credit loss experience based on the past due status and region of the customers, adjusted as appropriate to reflect current conditions and estimates of future economic conditions. When specific customers are identified as no longer sharing the same risk profile as their current pool, they are removed from the pool and evaluated separately. The Company also has long-term accounts receivable included in Other Long-term Assets. The CECL for long-term accounts receivable is estimated using the probability of default method and the default exposure due to limited historical information. The exposure of default is represented by the assets’ amortized carrying amount at the reporting date. The following table sets forth the activity in the Company’s allowance for credit losses: Carrying Amount Beginning balance as of February 28, 2022 $ 4 Prior period provision for expected credit losses 1 Write-offs charged against the allowance (4) Ending balance of the allowance for credit loss as at February 28, 2023 1 Current period provision for expected credit losses 5 Ending balance of the allowance for credit loss as at February 29, 2024 $ 6 The allowance for credit losses as at February 29, 2024 consists of $1 million (February 28, 2023 - $1 million) relating to CECL estimated based on days past due and region and $5 million (February 28, 2023 - nil) relating to specific customers that were evaluated separately. There were two customers that comprised more than 10% of accounts receivable as at February 29, 2024 (February 28, 2023 - two customers comprised more than 10%). Other Receivables As at February 29, 2024 and February 28, 2023, other receivables included items such as claims filed with the Ministry of Innovation, Science and Economic Development Canada relating to its Strategic Innovation Fund program’s investment in BlackBerry QNX, among other items, none of which were greater than 5% of the current assets balance. Other Current Assets Other current assets comprised the following: As at February 29, 2024 February 28, 2023 Intellectual property $ — $ 141 Other 47 41 $ 47 $ 182 As described in Note 12, on May 11, 2023, the Company completed its previously announced patent sale with Malikie Innovations Limited (“Malikie”) and recognized revenue of $218 million and cost of sales of $147 million, which is comprised of the carrying value of the intellectual property of $141 million referred to above and $6 million of capitalized costs during the first quarter of fiscal 2024 related to patent maintenance. See Note 12 under the heading “Patent Sale”. Other current assets also included the current portion of deferred commissions and prepaid expenses, among other items, none of which were greater than 5% of the current assets balance as at the balance sheet dates. Property, Plant and Equipment, Net Property, plant and equipment comprised the following: As at February 29, 2024 February 28, 2023 Cost BlackBerry operations and other information technology $ 85 $ 84 Leasehold improvements and other 15 19 Furniture and fixtures 6 9 Manufacturing, repair and research and development equipment 3 2 109 114 Accumulated amortization 88 89 Net book value $ 21 $ 25 For the year ended February 29, 2024, amortization expense related to property, plant and equipment amounted to $10 million (February 28, 2023 - $12 million; February 28, 2022 - $15 million). Sale of Property, Plant and Equipment, Net During the year ended February 29, 2024, the Company had no sale of property, plant and equipment, net. During the year ended February 28, 2023, the Company sold its corporate aircraft. As a result, the Company recorded proceeds of approximately $17 million and incurred a gain on disposal of approximately $6 million (cost of $29 million, accumulated amortization of $18 million, and a net book value of approximately $11 million). Intangible Assets, Net Intangible assets comprised the following: As at February 29, 2024 Cost Accumulated Net Book Acquired technology $ 900 $ 846 $ 54 Other acquired intangibles 386 334 52 Intellectual property 111 63 48 $ 1,397 $ 1,243 $ 154 As at February 28, 2023 Cost Accumulated Net Book Acquired technology $ 900 $ 824 $ 76 Other acquired intangibles 386 318 68 Intellectual property 123 64 59 $ 1,409 $ 1,206 $ 203 For the year ended February 29, 2024, amortization expense related to intangible assets amounted to $49 million (February 28, 2023 - $93 million; February 28, 2022 - $161 million). Total additions to intangible assets in fiscal 2024 amounted to $14 million (fiscal 2023 - $34 million) and included additions related to patent maintenance classified as other current assets on the Company’s consolidated balance sheets. During fiscal 2024, additions to intangible assets primarily consisted of payments for intellectual property relating to patent maintenance, registration and license fees. For the year ended February 29, 2024, the Company recorded $8 million in impairment charges related to patent abandonments (fiscal 2023 - $231 million related to intangible assets previously recognized from the acquisition of Cylance), see Note 3 for further details. Based on the carrying value of the identified intangible assets, as at February 29, 2024, and assuming no subsequent impairment of the underlying assets, the annual amortization expense for each of the five succeeding years is expected to be as follows: fiscal 2025 - $42 million; fiscal 2026 - $36 million; fiscal 2027 - $31 million; fiscal 2028 - $18 million and fiscal 2029 - $6 million. The weighted average remaining useful lives of the intangible assets are as follows: As at February 29, 2024 February 28, 2023 Acquired technology 3.3 years 4.0 years Other acquired intangibles 3.6 years 4.5 years Intellectual property 6.1 years 6.8 years Goodwill Changes to the carrying amount of goodwill during the fiscal years ended February 29, 2024, February 28, 2023 and February 28, 2022 were as follows: Carrying Amount Carrying amount as at February 29, 2021 $ 849 Effect of foreign exchange on non-U.S. dollar denominated goodwill (5) Carrying amount as at February 28, 2022 844 Goodwill impairment charge (note 3) (245) Effect of foreign exchange on non-U.S. dollar denominated goodwill (4) Carrying amount as at February 28, 2023 595 Effect of foreign exchange on non-U.S. dollar denominated goodwill 2 Goodwill impairment charge (note 3) (35) Carrying amount as at February 29, 2024 $ 562 Other Long-term Assets As at February 29, 2024, other long-term assets included long-term receivables related to intellectual property sold (see Note 12 under the heading “Patent Sale”), long-term receivables, and the long-term portion of deferred commission, among other items, none of which were greater than 5% of the total assets balance. As at February 28, 2023, other long-term assets included the long-term portion of deferred commission and long-term receivables, among other items, none of which were greater than 5% of the total assets balance. Accrued Liabilities Accrued liabilities comprised the following: As at February 29, 2024 February 28, 2023 Operating lease liabilities, current (note 11) 20 24 Restructuring programs, current portion 20 3 Other 77 116 $ 117 $ 143 Other accrued liabilities include accrued director fees, accrued vendor liabilities, variable incentive accrual, payroll withholding taxes and accrued royalties, among other items, none of which were greater than 5% of the current liabilities balance in any of the periods presented. |
Restructuring and Integration | Restructuring During fiscal 2023 and fiscal 2024, the Company commenced restructuring programs with the objectives of reducing its annual costs and expenses relating to the Cybersecurity business, and later separating and streamlining the Company’s centralized corporate functions into Cybersecurity and IoT specific teams such that the businesses may operate independently and on a profitable and cash flow positive basis. The reduction of overall Company costs will include rationalizing and streamlining existing central administrative functions, right-sizing cost structures within both business units including R&D and outsourced contracting, changes to overall product portfolio offerings and geographies the Company operates in, and optimizing related support functions and organizational structure. Other charges and cash costs may occur as programs are implemented or changes are completed. The following table sets forth the activity in the Company’s restructuring program liabilities for fiscal 2024 and fiscal 2023: Employee Facilities Total Balance as at February 28, 2022 $ — $ — $ — Charges incurred 8 2 10 Cash payments made (6) (1) (7) Balance as at February 28, 2023 2 1 3 Charges incurred 31 6 37 Cash payments made (16) (3) (19) Balance as at February 29, 2024 $ 17 $ 4 $ 21 Current portion $ 17 $ 3 $ 20 Long-term portion — 1 1 $ 17 $ 4 $ 21 The long-term portion of the restructuring liabilities is recorded at fair value, determined by measuring the remaining payments at present value using an effective interest rate of 5.0%, and the Company recorded interest expense over time to arrive at the total face value of the remaining payments. General and administrative |
Income Taxes
Income Taxes | 12 Months Ended |
Feb. 29, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES 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, 2024 February 28, 2023 February 28, 2022 Statutory Canadian tax rate 26.5 % 26.5 % 26.5 % Expected provision for (recovery of) income taxes $ (28) $ (191) $ 5 Differences in income taxes resulting from: Valuation allowance 28 125 (9) Investment tax credits (11) (10) 7 Change in unrecognized income tax benefits (1) 1 (2) Foreign tax rate differences 4 10 3 Non-deductible permanent differences 8 5 3 Goodwill impairment 9 65 — Prior period adjustments 9 4 (1) Other differences 6 5 1 $ 24 $ 14 $ 7 For the Years Ended February 29, 2024 February 28, 2023 February 28, 2022 Income (loss) before income taxes: Canadian $ (18) $ (128) $ 133 Foreign (88) (592) (114) $ (106) $ (720) $ 19 The provision for (recovery of) income taxes consists of the following: For the Years Ended February 29, 2024 February 28, 2023 February 28, 2022 Current Canadian $ 2 $ 1 $ (1) Foreign 22 13 8 $ 24 $ 14 $ 7 Deferred income tax assets and liabilities consist of the following temporary differences: As at February 29, 2024 February 28, 2023 Assets Property, plant, equipment and intangibles assets $ 258 $ 264 Non-deductible reserves 37 44 Minimum taxes 207 207 Debentures (note 6) — 1 Research and development 402 390 Tax loss carryforwards 514 495 Other 125 122 Deferred income tax assets 1,543 1,523 Valuation allowance 1,520 1,492 Deferred income tax assets net of valuation allowance 23 31 Liabilities Property, plant, equipment and intangibles assets (23) (31) Deferred income tax liabilities (23) (31) Net deferred income tax asset (liability) $ — $ — The Company regularly assesses the need for a valuation allowance against its deferred tax assets. In making that assessment, the Company considers both positive and negative evidence related to the likelihood of realization of the deferred tax assets to determine, based on the weight of available evidence, whether it is more likely than not that some or all of the deferred tax assets will be realized. In evaluating the need for a valuation allowance, the Company noted that there had been three years of cumulative losses, including fiscal 2024. In fiscal 2024, the Company saw an increase in the deferred tax valuation allowance of $28 million (February 28, 2023 - increase of $125 million). As a result, the deferred tax valuation allowance had an ending balance of $1,520 million (February 28, 2023 - $1,492 million). This accounting treatment has no effect on the Company’s ability to utilize deferred tax assets to reduce future cash tax payments. The Company will continue to assess the likelihood that the deferred tax assets will be realizable at each reporting period and the valuation allowance will be adjusted accordingly. The Company’s total unrecognized income tax benefits as at February 29, 2024 and February 28, 2023 were $20 million and $21 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, 2024 February 28, 2023 February 28, 2022 Unrecognized income tax benefits, opening balance $ 21 $ 20 $ 24 Increase for income tax positions of current year 1 1 — Settlement of tax positions (2) — (4) Unrecognized income tax benefits, ending balance $ 20 $ 21 $ 20 As at February 29, 2024, $20 million of the unrecognized tax benefits have been netted against deferred income taxes and nil has been recorded within income taxes payable on the Company’s consolidated balance sheets. A summary of open tax years by major jurisdiction is presented below: Jurisdiction Canada (1) Fiscal 2016 - 2024 United States (2) Fiscal 2021 - 2024 United Kingdom Fiscal 2023 - 2024 ______________________________ (1) Includes federal as well as provincial jurisdictions, as applicable. (2) Pertains to federal tax years. Certain state jurisdictions remain open from fiscal 2020 through fiscal 2024. The Company is subject to ongoing examination by tax authorities in the jurisdictions in which it operates. The Company regularly assesses the status of these examinations and the potential for adverse outcomes to determine the adequacy of the provision for income taxes, as well as the provisions for indirect and other taxes and related penalties and interest. The Company believes it is reasonably possible that approximately nil of its gross unrecognized income tax benefits will be realized in the next twelve months. While the final resolution of these audits is uncertain, the Company believes the ultimate resolution of these audits will not have a material adverse effect on its consolidated financial position, liquidity or results of operations. The Company recognizes interest and penalties related to unrecognized income tax benefits as interest expense that is netted and reported within investment income, net. The amount of interest accrued as at February 29, 2024 was approximately $3 million (February 28, 2023 - approximately $3 million). The amount of penalties accrued as at February 29, 2024 was nil (February 28, 2023 - nil). As at February 29, 2024, 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 Research and Development Tax Credits (1) Minimum Taxes 2029 $ 10 $ — $ 1 2030 — — 108 2031 1 12 72 2032 28 1 22 2033 88 133 — 2034 96 124 — 2035 92 52 4 2036 326 40 — 2037 492 23 — 2038 199 17 — 2039 13 14 — 2040 3 13 — 2041 — 8 — 2042 — 11 — 2043 182 14 — 2044 — 12 — Indefinite 422 22 — $ 1,952 $ 496 $ 207 ______________________________ (1) Includes federal, provincial and state balances. |
Debentures
Debentures | 12 Months Ended |
Feb. 29, 2024 | |
Debt Disclosure [Abstract] | |
Debentures | DEBENTURES 3.00% Convertible Senior Notes On January 29, 2024, the Company issued $200 million aggregate principal amount of 3.00% senior convertible unsecured notes (the “Notes”) in an offering to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended. The Company used the net proceeds of the issuance of the Notes principally to repay its outstanding $150 million aggregate principal amount of 1.75% extendible convertible unsecured debentures (the “Extension Debentures” and, collectively with the “2020 Debentures” (as defined below) and the Notes, the “Debentures”) at maturity on February 15, 2024. The Notes are due on February 15, 2029 unless earlier converted, redeemed, or repurchased. Each $1,000 principal amount of the Notes is convertible into 257.5826 common shares of the Company based on the initial conversion rate, for a total of 52 million common shares at a price of $3.88 per share, subject to adjustments. Prior to the close of business on the business day immediately preceding November 15, 2028, the Notes will be convertible only upon satisfaction of certain conditions and during certain periods, and thereafter, at any time until the close of business on the second scheduled trading day immediately preceding February 15, 2029. The Company may satisfy any conversions of the Notes by paying or delivering, as the case may be, cash, its common shares or a combination of cash and its common shares, at the Company’s election (or, in the case of any Notes called for redemption that are converted during the related redemption period, solely its common shares). Covenants associated with the Notes include general corporate maintenance, existence and reporting requirements. The Notes will bear interest at a rate of 3.00% per annum, payable semi-annually in arrears on February 15 and August 15 of each year, beginning on August 15, 2024. Under specified events of default, the outstanding principal and any accrued and unpaid interest on the Notes will become immediately due and payable upon request of holders holding not less than 25% of the principal amount of the Notes then outstanding. During the occurrence of certain specific events of default, the Company may elect to cure such events of default by increasing the 3.00% interest rate on the Notes by 0.25% to 0.50% per annum. The Company may not redeem the Notes prior to February 22, 2027, except in the event of certain tax law changes. On or after February 22, 2027, the Company may redeem for cash all or a portion of the Notes, at the Company’s election, if the last reported sale price of the Company’s common shares has been at least 130% of the conversion price then in effect on each of at least 20 trading days (whether or not consecutive) during any 30 consecutive trading-day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption at a cash redemption price equal to 100% of the aggregate principal amount of the Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. If the Company undergoes a fundamental change, as defined in the indenture governing the Notes, subject to certain conditions the Company will be required to make an offer to repurchase for cash all of the outstanding Notes (or any portion thereof that a holder determines to sell to the Company) at a repurchase price equal to 100% of the principal amount of the Notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the fundamental change repurchase date. In connection with certain corporate events or if the Company calls the Notes for redemption, the Company will, under certain circumstances, increase the conversion rate for noteholders who elect to convert their Notes in connection with such corporate event or convert their Notes called for redemption. The Company has recorded the Notes, including the debt itself and all embedded derivatives, at cost less debt issuance costs of $6 million and present the Notes as a single hybrid financial instrument. No portion of the embedded derivatives required bifurcation from the host debt contract. The following table summarizes the change in the Notes for the fiscal year ended February 29, 2024 from their date of issuance: As at February 29, 2024 Principal received as of January 29, 2024 200 Debt issuance costs paid (6) Balance as at February 29, 2024 $ 194 Extension Debentures and 2020 Debentures On November 17, 2023, the Company issued the Extension Debentures in a private placement to certain controlled affiliates of Fairfax Financial Holdings Limited (“Fairfax”). The Company used the net proceeds from the issuance of the Extension Debentures, together with cash on hand, to repay its outstanding $365 million aggregate principal amount of 1.75% unsecured convertible debentures (the “2020 Debentures”) at maturity on November 13, 2023. Aside from the maturity date, the terms of the Extension Debentures were substantially identical to those of the 2020 Debentures, except that the Extension Debentures were not listed on any stock exchange and did not involve an indenture trustee. The Company used a portion of the proceeds from the issuance of the Notes to repay the Extension Debentures at maturity on February 15, 2024. Each $1,000 principal amount of Extension Debentures was convertible at any time prior to the third business day prior to the maturity date into 166.67 common shares of the Company, for a total of 25 million common shares at a price of $6.00 per share, subject to adjustments. Covenants associated with the Extension Debentures included limitations on the Company’s total indebtedness. Interest on the Extension Debentures was payable on the maturity date in arrears at a rate of 1.75% per annum. Under specified events of default, the outstanding principal and any accrued interest on the Extension Debentures become immediately due and payable upon request of holders holding not less than 25% of the principal amount of the Extension Debentures then outstanding. During an event of default, the interest rate would increase to 5.75% per annum. The Extension Debentures were subject to a change of control provision whereby the Company would be required to make an offer to repurchase the Extension Debentures at 115% of par value if a person or group (not affiliated with Fairfax) acquired 35% of the Company’s outstanding common shares, acquired all or substantially all of its assets, or if the Company merged with another entity and the Company’s existing shareholders hold less than 50% of the common shares of the surviving entity. Additionally, the Extension Debentures could not be converted to the extent that, after giving effect to the conversion, the holder would beneficially own or exercise control or direction over more than 19.99% of the Company’s then issued and outstanding common shares. Due to the conversion option and other embedded derivatives within the Extension Debentures, and consistent with the Company’s accounting for the 2020 Debentures, the Company had elected to record the Extension Debentures, including the debt itself and all embedded derivatives, at fair value and present the Extension Debentures as a single hybrid financial instrument. No portion of the fair value of the Extension Debentures had been recorded as equity, nor would be if the embedded derivatives were bifurcated from the host debt contract. Each period, the fair value of the Extension Debentures and 2020 Debentures were recalculated and resulting gains and losses from the changes in fair value of the Extension Debentures and 2020 Debentures associated with non-credit components were recognized in income, while the change in fair value associated with credit components was recognized in accumulated other comprehensive loss (“AOCL”). The fair value of the Extension Debentures was determined using observable interest rate curves, and the market price and volatility of the Company’s common shares. The following table summarizes the change in fair value of the Extension Debentures from their date of issuance, which also represents the total changes through earnings of items classified as Level 2 in the fair value hierarchy: February 29, 2024 Principal received as of November 17, 2023 $ 150 Change in fair value of the Extension Debentures — Maturity of the Extension Debentures on February 15, 2024 (150) Balance as at February 29, 2024 $ — The following table summarizes the change in fair value of the 2020 Debentures for the years ended February 29, 2024 and February 28, 2023 which also represents the total changes through earnings of items classified as Level 3 in the fair value hierarchy: February 29, 2024 Balance as at February 28, 2022 $ 507 Change in fair value of the 2020 Debentures (140) Balance as at February 28, 2023 367 Change in fair value of the 2020 Debentures (2) Maturity of the 2020 Debentures on November 13, 2023 (365) Balance as at February 29, 2024 $ — The following table shows the impact of the changes in fair value of the Extension Debentures and 2020 Debentures for the years ended February 29, 2024, February 28, 2023 and February 28, 2022: For the Years Ended February 29, 2024 February 28, 2023 February 28, 2022 Income associated with the change in fair value from non-credit components recorded in the consolidated statements of operations $ 2 $ 138 $ 212 Income associated with the change in fair value from instrument-specific credit components recorded in AOCL — 2 1 Realized losses associated with the change in fair value from credit components recorded in the consolidated statements of operations on maturity of the Extension Debentures and 2020 Debentures (6) — — Realized losses associated with the change in fair value from credit components released from AOCL on maturity of the Extension Debentures and 2020 Debentures 6 — — Total decrease in the fair value of the Extension Debentures and 2020 Debentures $ 2 $ 140 $ 213 For the year ended February 29, 2024, the Company recorded interest expense related to the Debentures of $6 million, which has been included in investment income, net on the Company’s consolidated statements of operations (fiscal 2023 - $6 million; fiscal 2022 - $6 million). The Company is required to make semi-annual interest-only payments of approximately $3 million during the remaining term the Notes are outstanding. Fairfax, a related party under U.S. GAAP due to its beneficial ownership of common shares in the Company after taking into account potential conversion of the Extension Debentures, owned $330 million principal amount of the 2020 Debentures and $150 million principal amount of the Extension Debentures. As such, the payment of interest on the Extension Debentures and such portion of the 2020 Debentures, and their repayment, to Fairfax represented related party transactions. |
Capital Stock
Capital Stock | 12 Months Ended |
Feb. 29, 2024 | |
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, 2024 and February 28, 2023, 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, 2024, February 28, 2023 and February 28, 2022: Capital Stock and Stock Amount Common shares outstanding as at February 28, 2021 565,505 $ 2,823 Exercise of stock options 555 3 Common shares issued for restricted share unit settlements 8,011 — Stock-based compensation — 36 Common shares issued related to Exchange Shares 1,422 — Common shares issued for employee share purchase plan 735 7 Common shares outstanding as at February 28, 2022 576,228 2,869 Exercise of stock options 97 — Common shares issued for restricted share unit settlements 4,872 — Stock-based compensation — 34 Common shares issued for employee share purchase plan 960 6 Common shares outstanding as at February 28, 2023 582,157 2,909 Exercise of stock options 106 — Common shares issued for restricted share unit settlements 5,636 — Stock-based compensation — 33 Common shares issued on the redemption of deferred share units 297 1 Common shares issued for employee share purchase plan 1,037 5 Common shares outstanding as at February 29, 2024 589,233 $ 2,948 Common shares (the “Exchange Shares”) were issued in connection with the Cylance acquisition, which was completed on February 21, 2019. In lieu of cash, a portion of the consideration owed to certain Cylance shareholders was paid in equal installments of Exchange Shares on the first three anniversary dates of the closing. The Company had 589 million voting common shares outstanding, 0.2 million options to purchase voting common shares, 19 million RSUs and 1 million DSUs outstanding as at April 1, 2024. In addition, 51.5 million common shares are issuable upon conversion in full of the Notes as described in Note 6. (b) Stock-based Compensation Restricted share units The Company recorded compensation expense with respect to RSUs of approximately $33 million in the year ended February 29, 2024 (February 28, 2023 - $34 million; February 28, 2022 - $35 million). A summary of RSU activity during fiscal 2024 is shown below: RSUs Outstanding Number Weighted Average Aggregate Balance as at February 28, 2023 19,640 $ 5.92 Granted during the year 8,097 3.51 Vested during the year (5,636) 6.76 Forfeited/cancelled during the year (5,800) 6.31 Balance as at February 29, 2024 16,301 $ 4.30 1.68 $ 45 Expected to vest February 29, 2024 13,491 $ 4.29 1.66 $ 38 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, 2024 that would have been received by RSU holders if all RSUs had been vested on February 29, 2024). Tax deficiencies incurred by the Company related to the RSUs vested were nil for the year ended February 29, 2024 (February 28, 2023 - tax deficiency of nil; February 28, 2022 - tax deficiency of nil). As at February 29, 2024, there was $53 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 1.63 years. During the year ended February 29, 2024, there were 8,097,408 RSUs granted (February 28, 2023 - 11,882,500), all of which will be settled upon vesting by the issuance of new common shares. During the year ended February 29, 2024, the weighted average fair value for RSUs granted was $3.51 (February 28, 2023 - $4.29; February 28, 2022 - $9.72). During the year ended February 29, 2024, the fair value of RSUs that vested was $38 million (February 28, 2023 - $40 million; February 28, 2022 - $69 million). Deferred share units (“DSUs”) The Company issued 381,073 DSUs and redeemed 602,753 DSUs during the year ended February 29, 2024. There were $1 million of DSUs redeemed for shares. There were 1.4 million DSUs outstanding as at February 29, 2024 (February 28, 2023 - 1.6 million). The Company had a liability of $4 million in relation to the DSU Plan as at February 29, 2024 (February 28, 2023 - $6 million) included in accrued liabilities. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Feb. 29, 2024 | |
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, 2024 February 28, 2023 February 28, 2022 Net income (loss) for basic earnings (loss) per share available to common shareholders $ (130) $ (734) $ 12 Less: Debentures fair value adjustment (1) (2) — (138) (212) Add: interest expense on Debentures (1) (2) — 6 6 Net loss for diluted loss per share available to common shareholders $ (130) $ (866) $ (194) Weighted average number of shares outstanding (000’s) - basic (1)(3) 584,543 578,654 570,607 Effect of dilutive securities (000’s) Conversion of 2020 Debentures (1) (2) — 60,833 60,833 Weighted average number of shares and assumed conversions (000’s) diluted 584,543 639,487 631,440 Earnings (loss) per share - reported Basic $ (0.22) $ (1.27) $ 0.02 Diluted $ (0.22) $ (1.35) $ (0.31) ______________________________ (1) The Company has not presented the dilutive effect of the Notes, Extension Debentures or 2020 Debentures using the if-converted method in the calculation of diluted loss per share for the year ended February 29, 2024, as to do so would be antidilutive. See Note 6 for details on the Debentures. (2) The Company has presented the dilutive effect of the 2020 Debentures using the if-converted method, assuming conversion at the beginning of the fiscal year for the years ended February 28, 2023 and February 28, 2022. Accordingly, to calculate diluted loss per share, the Company adjusted net income (loss) by eliminating the fair value adjustment made to the 2020 Debentures and interest expense incurred on the 2020 Debentures in the years ended February 28, 2023 and February 28, 2022, and added the number of shares that would have been issued upon conversion to the diluted weighted average number of shares outstanding. See Note 6 for details on the 2020 Debentures. (3) 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 loss per share for the years ended February 29, 2024, February 28, 2023 and February 28, 2022 as to do so would be antidilutive. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Feb. 29, 2024 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | ACCUMULATED OTHER COMPREHENSIVE LOSS The changes in AOCL by component net of tax, for the years ended February 29, 2024, February 28, 2023 and February 28, 2022 were as follows: As At February 29, 2024 February 28, 2023 February 28, 2022 Cash Flow Hedges Balance, beginning of period $ (1) $ — $ 1 Other comprehensive loss before reclassification — (3) — Amounts reclassified from AOCL into net income (loss) 1 2 (1) Accumulated net unrealized losses on derivative instruments designated as cash flow hedges $ — $ (1) $ — Foreign Currency Cumulative Translation Adjustment Balance, beginning of period $ (16) $ (10) $ (4) Other comprehensive income (loss) 2 (6) (6) Foreign currency cumulative translation adjustment $ (14) $ (16) $ (10) Change in Fair Value From Instrument-Specific Credit Risk On Debentures Balance, beginning of period $ (6) $ (8) $ (9) Other comprehensive income before reclassification — 2 1 Amounts reclassified from AOCL into net income (loss) 6 — — Change in fair value from instruments-specific credit risk on Debentures $ — $ (6) $ (8) Other Post-Employment Benefit Obligations Balance, beginning of period $ (1) $ (1) $ (1) Other comprehensive income 1 — — Actuarial losses associated with other post-employment benefit obligations $ — $ (1) $ (1) Accumulated Other Comprehensive Loss, End of Period $ (14) $ (24) $ (19) |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Feb. 29, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES (a) Letters of Credit The Company had $25 million in collateralized outstanding letters of credit in support of certain leasing arrangements entered into in the ordinary course of business as of February 29, 2024. 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 and subject the Company to significant liabilities. 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 probable 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, 2024, 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 possible 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; 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. The Company has included the following summaries of certain of its legal proceedings though they do not meet the test for accrual described above. 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 and the consolidated U.S. class actions was settled; see “Litigation Settlement” below in this Note 10. On July 23, 2014, the plaintiff in the putative Ontario class action ( Swisscanto Fondsleitung AG v. BlackBerry Limited, et al. ) filed a motion for class certification and for leave to pursue statutory misrepresentation claims. On November 17, 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 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. Discovery is proceeding and the Court has not set a trial date. On March 17, 2017, a putative employment class action was filed against the Company in the Ontario Superior Court of Justice ( Parker v. BlackBerry Limited ). 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 million, 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. The Company filed its Statement of Defence on December 19, 2019. The parties participated in a mediation on November 9, 2022, which did not result in an agreement. The Court has set a trial date of June 2, 2025, and scheduled a pre-trial conference on December 4, 2024. Discovery is proceeding. Other contingencies As at February 29, 2024, the Company has recognized $17 million (February 28, 2023 - $17 million) in funds from claims filed with the Ministry of Innovation, Science and Economic Development Canada relating to its Strategic Innovation Fund (“SIF”) 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) Litigation Settlement On April 6, 2022, through a mediator, the Company agreed in principle to pay $165 million to settle the consolidated U.S. class actions (see “Litigation” above in this Note 10). The Stipulation of Settlement was executed effective June 7, 2022. On June 29, 2022, the Company paid $1 million of the settlement amount and the remaining $164 million was paid on September 6, 2022. On September 29, 2022, the Court granted final approval of the settlement and entered final judgment. (d) 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 2024. |
Leases
Leases | 12 Months Ended |
Feb. 29, 2024 | |
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 six 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 Years Ended February 29, 2024 February 28, 2023 February 28, 2022 Operating lease cost, included in general and administrative $ 18 $ 20 $ 23 For the Years Ended February 29, 2024 February 28, 2023 February 28, 2022 Cash used in operating activities related to operating lease payments $ 28 $ 32 $ 37 During the year ended February 29, 2024, the Company entered into $13 million (February 28, 2023 - $15 million) in lease obligations and recognized a corresponding ROU asset of $13 million (February 28, 2023 - $15 million). During the year ended February 29, 2024, the Company incurred losses of $7 million (February 28, 2023 - $4 million; February 28, 2022 - nil) on LLA impairment of ROU assets, as described in Note 3. The Company also had sublease income during the year ended February 29, 2024 of $4 million (February 28, 2023 - $3 million; February 28, 2022 - $3 million) and incurred short-term lease costs of $3 million (February 28, 2023 - $2 million; February 28, 2022 - $2 million). Supplemental consolidated balance sheet information related to leases was as follows: As at February 29, 2024 February 28, 2023 Operating leases Operating lease assets Operating lease ROU assets $ 32 $ 44 Operating lease liabilities Accrued liabilities $ 20 $ 24 Operating lease liabilities 38 52 Total operating lease liabilities $ 58 $ 76 As at February 29, 2024 February 28, 2023 Weighted average remaining lease term Operating leases 3.2 years 3.8 years Weighted average discount rate Operating lease 3.9 % 3.4 % Maturities of undiscounted lease liabilities were as follows: As at February 29, 2024 Operating Leases Fiscal year 2025 $ 23 Fiscal year 2026 18 Fiscal year 2027 12 Fiscal year 2028 10 Fiscal year 2029 1 Thereafter 1 Total future minimum lease payments 65 Less: Imputed interest (7) Total $ 58 |
Revenue and Segment Disclosures
Revenue and Segment Disclosures | 12 Months Ended |
Feb. 29, 2024 | |
Segment Reporting [Abstract] | |
Revenue and Segment Disclosures | REVENUE AND SEGMENT DISCLOSURES The Company reports segment information based on the “management” approach. The management approach designates the internal reporting used by the CODM for making decisions and assessing performance as a source of the Company’s reportable operating segments. The CODM, who is the CEO of the Company, makes decisions and assesses the performance of the Company using three operating segments. The CODM does not evaluate operating segments using discrete asset information. The Company does not specifically allocate assets to operating segments for internal reporting purposes. Segment Disclosures The Company is organized and managed as three operating segments: Cybersecurity, IoT, and Licensing and Other. 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 following table shows information by operating segment for the fiscal year ended February 29, 2024: Cybersecurity IoT Licensing and Other Segment Totals Segment revenue $ 378 $ 215 $ 260 $ 853 Segment cost of sales 142 36 152 330 Segment gross margin (1) $ 236 $ 179 $ 108 $ 523 ______________________________ (1) A reconciliation of total segment gross margin to consolidated totals is set forth below. The following table shows information by operating segment for the fiscal year ended February 28, 2023 and February 28, 2022: For the Year Ended February 28, 2023 February 28, 2022 Cybersecurity IoT Licensing and Other Segment Totals Cybersecurity IoT Licensing and Other Segment Totals Segment revenue $ 418 $ 206 $ 32 $ 656 $ 477 $ 178 $ 63 $ 718 Segment cost of sales 185 37 12 234 194 30 23 247 Segment gross margin (1) $ 233 $ 169 $ 20 $ 422 $ 283 $ 148 $ 40 $ 471 ______________________________ (1) A reconciliation of total segment gross margin to consolidated totals is set forth below. Cybersecurity consists of BlackBerry® UEM and Cylance® cybersecurity solutions (collectively, BlackBerry Spark®), BlackBerry® AtHoc® and BlackBerry® SecuSUITE®. The Company’s Cylance AI and machine learning-based platform consists of CylanceENDPOINT™, CylanceGUARD®, CylanceEDGE™, CylanceINTELLIGENCE™ and other cybersecurity applications. The Company’s endpoint management platform includes BlackBerry® UEM, BlackBerry® Dynamics™, and BlackBerry® Workspaces solutions. Cybersecurity revenue is generated predominantly through software licenses, commonly bundled with support, maintenance and professional services. IoT consists of BlackBerry® QNX®, BlackBerry® Certicom®, BlackBerry Radar®, BlackBerry IVY® and other IoT applications. IoT revenue is generated predominantly through software licenses, commonly bundled with support, maintenance and professional services. Licensing and Other consists of the Company’s intellectual property arrangements and settlement awards. Other consists of the Company’s legacy SAF business, which ceased operations on January 4, 2022. The following table reconciles total segment gross margin for the fiscal year ended February 29, 2024, February 28, 2023 and February 28, 2022 to the Company’s consolidated totals: For the Years Ended February 29, 2024 February 28, 2023 February 28, 2022 Total segment gross margin 523 $ 422 $ 471 Adjustments (1) : Less: Stock compensation 3 3 4 Less: Research & development 186 207 219 Sales and marketing 171 176 183 General and administrative 181 164 114 Amortization 54 96 165 Impairment of long-lived assets 15 235 — Impairment of goodwill 35 245 — Gain on sale of property, plant and equipment, net — (6) — Debentures fair value adjustment 3 (138) (212) Litigation settlement — 165 — Investment income, net (19) (5) (21) Consolidated income (loss) before income taxes $ (106) $ (720) $ 19 ______________________________ (1) The CODM reviews segment information on an adjusted basis, which excludes certain amounts as described below: Stock compensation expenses - Equity compensation is a non-cash expense and does not impact the ongoing operating decisions taken by the Company’s management. Patent Sale On May 11, 2023, the Company completed its previously announced patent sale with Malikie and sold certain non-core patent assets for $170 million in cash on closing, an additional $30 million in fixed consideration due by no later than the third anniversary of closing and variable consideration in the form of future royalties in the aggregate amount of up to $700 million (the “Malikie Transaction”). Pursuant to the terms of the Malikie Transaction, the Company received a license back to the patents sold, which relate primarily to mobile devices, messaging and wireless networking. In the first quarter of fiscal 2024, the Company recognized revenue of $218 million and cost of sales of $147 million related to intellectual property sold. As at February 29, 2024, the remaining financing component on the patent sale was $10 million and will be recognized as interest income over the payment terms. The Company estimated variable consideration from future royalty revenues using an expected value method including inputs from both internal and external sources related to patent monetization activities and cash flows, and constrained the recognition of that variable consideration based on the Company’s accounting policies and critical accounting estimates as described in Note 1. The present value of variable consideration recognized as revenue was $23 million and the amount of variable consideration constrained was $210 million. The Company evaluates its conclusions as to whether the constraints are still applicable on an ongoing basis, and will make updates when it observes a sufficient amount of evidence that amounts of variable consideration are no longer subject to constraint or the estimated amount of variable consideration has changed. 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 discussed above in “Segment Disclosures”. 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, 2024 February 28, 2023 February 28, 2022 North America (1) $ 556 65.2 % $ 350 53.4 % $ 413 57.5 % Europe, Middle East and Africa 172 20.2 % 222 33.8 % 234 32.6 % Other regions 125 14.6 % 84 12.8 % 71 9.9 % Total $ 853 100.0 % $ 656 100.0 % $ 718 100.0 % ______________________________ ( 1) 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, classified by timing of recognition, was as follows: For the Year Ended February 29, 2024 February 28, 2023 February 28, 2022 Products and services transferred over time $ 279 $ 364 $ 428 Products and services transferred at a point in time 574 292 290 Total $ 853 $ 656 $ 718 Revenue contract balances The following table sets forth the activity in the Company’s revenue contract balances for the fiscal year ended February 29, 2024: Accounts Receivable Deferred Revenue Deferred Commissions Opening balance as at February 28, 2023 $ 120 $ 215 $ 17 Increases due to invoicing of new or existing contracts, associated contract acquisition costs, or other 939 605 32 Decrease due to payment, fulfillment of performance obligations, or other (804) (598) (28) Increase, net 135 7 4 Closing balance as at February 29, 2024 $ 255 $ 222 $ 21 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, 2024 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. The disclosure excludes estimates of variable consideration relating to future royalty revenues from the Malikie Transaction, which have been constrained based on the Company’s accounting policies and critical accounting estimates as described in Note 1 and under “Patent Sale” in this Note 12. As at February 29, 2024 Less than 12 Months 12 to 24 Months Thereafter Total Remaining performance obligations $ 194 $ 14 $ 14 $ 222 Revenue recognized for performance obligations satisfied in prior periods For the fiscal year ended February 29, 2024, $12 million in revenue was recognized relating to performance obligations satisfied in a prior period as a result of certain variable consideration no longer being subject to constraint (fiscal year ended February 28, 2023 - $1 million; fiscal year ended February 28, 2022 - $1 million). Property, plant and equipment, intangible assets, operating lease ROU assets and goodwill, classified by geographic region in which the Company’s assets are located, were as follows: As at February 29, 2024 February 28, 2023 Property, Plant and Equipment, Intangible Assets, Operating Lease ROU Assets and Goodwill Total Assets Property, Plant and Equipment, Intangible Assets, Operating Lease ROU Assets and Goodwill Total Assets Canada $ 78 $ 342 $ 98 $ 375 United States 662 923 742 1,208 Other 29 130 27 96 $ 769 $ 1,395 $ 867 $ 1,679 Information About Major Customers |
Cash Flow and Additional Inform
Cash Flow and Additional Information | 12 Months Ended |
Feb. 29, 2024 | |
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, 2024 February 28, 2023 February 28, 2022 Interest paid during the year $ 6 $ 6 $ 6 Income taxes paid during the year 10 2 5 Income tax refunds received during the year 1 5 6 (b) Additional Information Advertising expense, which includes media, agency and promotional expenses totaling $22 million is included in sales and marketing expenses for the fiscal year ended February 29, 2024. (February 28, 2023 - $29 million; February 28, 2022 - $25 million) General and administrative expenses for the fiscal year ended February 29, 2024 included nil with respect to foreign exchange gain, net of foreign exchange hedging (February 28, 2023 - nil; February 28, 2022 - $1 million). 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 2024 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, 2024, approximately 19% of cash and cash equivalents, 25% of accounts receivable and 59% of accounts payable were denominated in foreign currencies (February 28, 2023 – 19%, 24% and 36%, 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 with fixed interest rates of varying maturities. Consequently, the Company is exposed to interest rate risk as a result of holding investments of varying maturities and the significant financing components within certain revenue contracts with customers. 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 also has significant financing components within certain revenue contracts with customers and is exposed to interest rate risk as a result of discounting the future payments from customers with a fixed interest rate. The Company has also issued Notes with a fixed interest rate, as described in Note 6. The Company is exposed to interest rate risk as a result of the Notes. The Company does not currently utilize interest rate derivative instruments. Credit risk The Company is exposed to market and credit risk on its investment portfolio. The Company is also exposed to credit risk with customers, as described in Note 4. The Company reduces this risk from its investment portfolio by investing in liquid, investment-grade securities and by limiting exposure to any one entity or group of related entities. As at February 29, 2024, no single issuer represented more than 30% of the total cash, cash equivalents and investments (February 28, 2023 - no single issuer represented more than 12% of the total cash, cash equivalents and investments), with the largest such issuer representing bearer deposits, term deposits and cash balances with 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, 2024, the Company had no collateral posted or held with counterparties (February 28, 2023 - $1 million in collateral 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, 2024 | |
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 is organized and managed as three reportable operating segments: Cybersecurity, IoT (collectively, “Software & Services”), and Licensing and Other, as further discussed in Note 12. |
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, right of return and customer incentive commitments, fair value of reporting units in relation to actual or potential goodwill impairment, fair value of the Debentures (as defined in Note 6), fair value of share-based liability awards, fair value of long-lived assets in relation to actual or potential impairment, the Company’s long-lived asset groupings, estimated useful lives of property, plant and equipment and intangible assets, provision (or recovery) of income taxes, realization of deferred income tax assets and the related components of the valuation allowance, allowance for credit losses, incremental borrowing rates 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, 2024. |
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 subsidiary is 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 the translation of foreign currency denominated assets and liabilities are included as a currency translation adjustment within accumulated other comprehensive loss (“AOCL”). |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents consist of balances with banks and liquid investments with maturities of three |
Accounts receivable, net | Accounts receivable, net of allowance |
Investments | Investments The Company’s cash equivalents and investments, other than publicly issued equity securities and non-marketable 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 AOCL 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. 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 non-marketable 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 non-marketable 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 Allowance for Credit Losses on Available-for-sale Debt Securities At each reporting period, the Company evaluates its available-for-sale debt securities at the individual security level to determine whether there is a decline in the fair value below its amortized cost basis (an impairment). In circumstances where the Company intends to sell, or is more likely than not required to sell, the security before it recovers its amortized cost basis, the difference between fair value and amortized cost is recognized as a loss in the consolidated statement of operations, with a corresponding write-down of the security’s amortized cost. In circumstances where neither condition exists, the Company then evaluates whether a decline is due to credit-related factors. The factors considered in determining whether a credit loss exists can include the extent to which fair value is less than the amortized cost basis, changes in the credit quality of the underlying issuer, credit ratings actions, as well as other factors. To determine the portion of a decline in fair value that is credit-related, the Company compares the present value of the expected cash flows of the security discounted at the security’s effective interest rate to the amortized cost basis of the security. A credit-related impairment is limited to the difference between fair value and amortized cost, and recognized as an allowance for credit loss on the consolidated balance sheet with a corresponding adjustment to net income. Any remaining decline in fair value that is non-credit related is recognized in other comprehensive income (loss), net of tax. Improvements in expected cash flows due to improvements in credit are recognized through reversal of the credit loss and corresponding reduction in the allowance for credit loss. |
Derivative financial instruments | Derivative financial instruments 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 derivative’s gain or loss is initially reported as a component of AOCL, net of tax, and subsequently reclassified into income in the same period or periods in which the hedged item affects 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 AOCL 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 impact to income as a result of 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 and impairment. Amortization is provided using the following rates and methods: Leasehold improvements and other Straight-line over terms between 5 and 15 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 30% per annum For amortization on ROU assets, see the Company’s accounting policy on leases below and Note 11 for the remaining lease terms of leases. |
Leases | Leases Operating lease 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 the commencement date, the Company recognizes the lease payments as lease cost on a straight-line basis over the lease term. |
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. In the annual impairment test, the carrying value 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 using a discounted future cash flow model, market-based approaches, 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 rates of revenue growth for the Company’s reporting units, estimation of the useful life over which cash flows will occur, terminal growth rates, profitability measures, and determination of the discount rates for the reporting units. The carrying value of the Company’s assets was assigned to reporting units using reasonable methodologies based on the asset type. When the carrying value of a reporting unit exceeds its fair value, goodwill of the reporting unit is considered to be impaired and written down to its fair value. Different judgments could yield different results. |
Intangible assets | Intangible assets Intangible assets with definite lives are stated at cost, less accumulated amortization and impairment. Amortization is provided on a straight-line basis over the following terms: Acquired technology Between 3 and 10 years Intellectual property Between 1 and 25 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, intangible assets with finite useful lives and ROU assets for impairment whenever events or changes in circumstances indicate that the carrying value 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 value of its net assets. If the net cash flows of the asset group exceed the carrying value of its net assets, LLA are not considered to be impaired. If the carrying value 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 value of the asset group’s net assets exceeds its fair value, then the excess represents the maximum amount of potential impairment that will be allocated to LLA in 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. |
Convertible debentures | Convertible debentures The Company has recognized the Notes (as defined in Note 6) as a single liability instrument measured at amortized cost. Debt issuance costs related to the Notes have been recorded as a direct deduction from the face amount of the Notes and will be amortized using the effective interest method. The Company elected to measure its Extension Debentures (as defined in Note 6) and 2020 Debentures (as defined in Note 6) at fair value in accordance with the fair value option. Each period, the fair value of the Extension Debentures and 2020 Debentures was recalculated and resulting gains and losses from the change in fair value of the Extension Debentures and 2020 Debentures associated with non-credit components were recognized in income, while the change in fair value associated with credit components were recognized in AOCL. Extension Debentures The fair value of the Extension Debentures was determined using the significant inputs of principal value, interest rate spreads and curves, and the market price and volatility of the Company’s common shares. 2020 Debentures The fair value of the 2020 Debentures was determined using the significant inputs of principal value, interest rate spreads and curves, any observable trades of the 2020 Debentures that occurred during the period, the market price and volatility of the Company’s common shares, and the significant Level 3 inputs related to credit spread and the implied discount of the 2020 Debentures at issuance. |
Revenue recognition | Revenue recognition 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. 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 The Company is organized and managed as three operating segments. The Company has multiple products and services from which it derives revenue, which are structured in three groups: Cybersecurity, IoT and Licensing and Other. Cybersecurity Cybersecurity includes revenue from Cylance® cybersecurity and BlackBerry unified endpoint management (“UEM”) solutions (collectively, BlackBerry Spark®), BlackBerry® AtHoc® and SecuSUITE®. Cybersecurity revenue is generated predominantly through software licenses, commonly bundled with support, maintenance and professional services. Cylance Cybersecurity The BlackBerry Spark platform is a comprehensive offering of security software products and services, including the Cylance cybersecurity solutions and BlackBerry Unified Endpoint Management, offering the Company’s broadest range of tailored cybersecurity and endpoint management options. The Cylance cybersecurity solutions include revenue from the Company’s artificial intelligence and machine learning-based platform consisting of CylanceENDPOINT™, CylanceGUARD®, CylanceEDGE™, CylanceINTELLIGENCE™ and other cybersecurity applications. The Company generates software license revenue from term subscription products, which includes technical support, and any updates and upgrades. 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. BlackBerry UEM The Company’s endpoint management platform includes BlackBerry® UEM, BlackBerry® Dynamics™ and BlackBerry® Workspaces solutions (which are often sold together as part of the BlackBerry UEM Suite), and BlackBerry Messenger (BBM®) Enterprise. 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 SecuSUITE SecuSUITE revenue is generated from software license products associated with secure communications and the associated hardware. Similar to the Cylance cybersecurity and BlackBerry UEM products, if the licensed software requires access to the Company’s proprietary secure network infrastructure, revenue from the contract is recognized over time, ratably over the expected term or over the customer life, if licensed on a perpetual basis. If access to the Company’s proprietary network infrastructure is not required, revenue associated with the license is recognized at a point in time upon delivery of the software. Revenue from the hardware is recognized once title and the significant risks and rewards of ownership of the products are transferred to the customer, which occurs after the product has shipped. BlackBerry AtHoc BlackBerry AtHoc generates revenue from networked critical event management solutions through perpetual and term subscriptions which include technical support, as well as associated professional services. The licensed software in most contracts requires access to the Company’s proprietary secure network infrastructure in order to function, specifically through AtHoc’s secure platform which is included within the Company’s data center. 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. IoT IoT consists of BlackBerry Technology Solutions, BlackBerry Radar® and BlackBerry IVY™. BlackBerry Technology Solutions includes revenue from BlackBerry® QNX®, BlackBerry Certicom® and other IoT applications. IoT revenue is generated predominantly through software licenses, commonly bundled with support, maintenance and professional services. 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 digital cockpit 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 shipped by the customer, 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 Licensing and Other Licensing and Other includes revenue from the Company’s intellectual property licensing arrangements and settlement awards. Other revenue consists of revenue associated with the Company’s legacy service access fees (“SAF”) business. 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 contains distinct performance obligations with standalone functionality and whether the Company is the principal or agent in the transaction. Significant judgment is applied in assessing contractual terms which could impact the timing and amount of revenue recognition. 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. As part of these agreements the Company may also recognize revenue relating to the sale and assignment of patents. 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. Other includes revenue associated with the Company’s legacy SAF business, relating to subscribers utilizing the Company’s legacy BlackBerry 7 and prior operating systems, for which the Company ended support and maintenance as of January 4, 2022. SAF revenue was recognized over time as the monthly service was provided. In instances where the Company invoiced the SAF customer prior to performing the service, the pre-billing was recorded as deferred revenue. See Note 12 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. To the extent the transaction price in a contract with a customer includes variable consideration, the Company estimates the amount of variable consideration that should be included in the price utilizing either the expected value method or the most likely amount method, depending on the nature of the variable consideration. The Company also estimates whether and how much variable consideration is subject to constraint if it cannot conclude it is probable that a significant reversal in revenue will not occur, due to factors such as: the consideration being highly susceptible to factors outside the Company’s influence, the period of time before the variable consideration is resolved, the Company’s previous experience with similar contracts, the Company’s history of price concessions or changing of payment terms, and whether there is a large number and broad range of possible variable consideration amounts. 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. Contract assets and liabilities are presented net as either a single contract asset or contract liability. 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 sales and marketing expenses. The Company has applied the practical expedient to expense sales commission as incurred if the amortization period would have been for one year or less. The practical expedient was applied to sales commissions allocated to professional services, as these contracts are generally for one year or less. See Note 12 for further information on the Company’s contract balances. |
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 to evaluate whether an income tax position has met the recognition threshold by determining if the weight of available evidence indicates that it is more likely than not to be sustained upon examination. The second step is to measure the income tax position that has met the recognition threshold as the largest amount that is more than 50% likely of being realized upon settlement. The Company continually assesses the likelihood and amount of potential adjustments and adjusts the income tax provisions, income taxes payable and deferred income taxes in the period in which the facts that give rise to a revision become known. The Company recognizes interest and penalties related to uncertain income tax positions as interest expense, which is then netted and reported within investment income. |
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 its non-U.S. dollar functional currency subsidiary 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 the 2020 Debentures and Extension Debentures as described in Note 6 and Note 9, 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 7(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 45,875,000 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 8 million shares in the equity pool available for future grants under the Equity Plan as at February 29, 2024. 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 Company has the ability and intent to settle the awards in common shares. The compensation expense for standard RSUs is calculated based on the fair value of each RSU as determined by the closing value of the Company’s common shares on the business day of the grant date. The Company recognizes compensation expense over the vesting period of the RSU. 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 trading days preceding the redemption date. Alternatively, the Company may elect to redeem DSUs by way of shares purchased on the open market or issued by the Company. |
Advertising costs | Advertising costs The Company expenses all advertising costs as incurred. These costs are included in sales and marketing expenses. |
Government Subsidies, Policy | Government subsidies |
Blackberry Limited and Summar_3
Blackberry Limited and Summary of Significant Accounting Policies and Critical Accounting Estimates (Tables) | 12 Months Ended |
Feb. 29, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Property Plant And Equipment Useful Lives | Property, plant and equipment are stated at cost, less accumulated amortization and impairment. Amortization is provided using the following rates and methods: Leasehold improvements and other Straight-line over terms between 5 and 15 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 30% per annum For amortization on ROU assets, see the Company’s accounting policy on leases below and Note 11 for the remaining lease terms of leases. |
Intangible Asset Useful Lives | Intangible assets with definite lives are stated at cost, less accumulated amortization and impairment. Amortization is provided on a straight-line basis over the following terms: Acquired technology Between 3 and 10 years Intellectual property Between 1 and 25 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, 2024 | |
Cash and Cash Equivalents [Abstract] | |
Components of Cash, Cash Equivalents and Investments | The components of cash, cash equivalents and investments by fair value level as at February 29, 2024 were as follows: Cost Basis (1) Unrealized Unrealized Fair Value Cash and Short-term Long-term Restricted Cash and Cash Equivalents Bank balances $ 96 $ — $ — $ 96 $ 96 $ — $ — $ — Other investments 30 6 — 36 — — 36 — 126 6 — 132 96 — 36 — Level 1: Equity securities 10 — (10) — — — — — Level 2: Term deposits, and certificates of deposits 21 — — 21 — — — 21 Bearer deposit notes 53 — — 53 28 25 — — Commercial paper 47 — — 47 15 32 — — Non-U.S. promissory notes 35 — — 35 30 5 — — U.S. treasury bills 10 — — 10 6 — — 4 166 — — 166 79 62 — 25 $ 302 $ 6 $ (10) $ 298 $ 175 $ 62 $ 36 $ 25 ______________________________ (1) Cost basis for other investments includes the effect of returns of capital and impairment. The components of cash, cash equivalents and investments by fair value level as at February 28, 2023 were as follows: Cost Basis (1) Unrealized Unrealized Fair Value Cash and Short-term Long-term Restricted Cash and Cash Equivalents Bank balances $ 89 $ — $ — $ 89 $ 87 $ — $ — $ 2 Other investments 26 2 — 28 — — 28 — 115 2 — 117 87 — 28 2 Level 1: Equity securities 10 — (10) — — — — — Level 2: Term deposits, and certificates of deposits 33 — — 33 8 — — 25 Bearer deposit notes 82 — — 82 82 — — — Commercial paper 159 — — 159 108 51 — — Non-U.S. promissory notes 45 — — 45 — 45 — — Non-U.S. government sponsored enterprise notes 30 — — 30 10 20 — — Corporate notes/bonds 15 — — 15 — 15 — — 364 — — 364 208 131 — 25 Level 3: Other investments 2 4 — 6 — — 6 — $ 491 $ 6 $ (10) $ 487 $ 295 $ 131 $ 34 $ 27 ______________________________ (1) Cost basis for other investments includes the effect of returns of capital and impairment. |
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, 2024, February 28, 2023 and February 28, 2022 from the consolidated balance sheets to the consolidated statements of cash flows: As at February 29, 2024 February 28, 2023 February 28, 2022 Cash and cash equivalents $ 175 $ 295 $ 378 Restricted cash and cash equivalents 25 27 28 Total cash, cash equivalents, restricted cash, and restricted cash equivalents presented in the consolidated statements of cash flows $ 200 $ 322 $ 406 |
Contractual Maturities of Available-for-Sale Investments | The contractual maturities of available-for-sale investments as at February 29, 2024 and February 28, 2023 were as follows: As at February 29, 2024 February 28, 2023 Cost Basis Fair Value Cost Basis Fair Value Due in one year or less $ 166 $ 166 $ 364 $ 364 No fixed maturity 10 — 10 — $ 176 $ 166 $ 374 $ 364 |
Consolidated Balance Sheets D_2
Consolidated Balance Sheets Details (Tables) | 12 Months Ended |
Feb. 29, 2024 | |
Balance Sheet Related Disclosures [Abstract] | |
Accounts Receivable, Allowance for Credit Loss | The following table sets forth the activity in the Company’s allowance for credit losses: Carrying Amount Beginning balance as of February 28, 2022 $ 4 Prior period provision for expected credit losses 1 Write-offs charged against the allowance (4) Ending balance of the allowance for credit loss as at February 28, 2023 1 Current period provision for expected credit losses 5 Ending balance of the allowance for credit loss as at February 29, 2024 $ 6 The allowance for credit losses as at February 29, 2024 consists of $1 million (February 28, 2023 - $1 million) relating to CECL estimated based on days past due and region and $5 million (February 28, 2023 - nil) relating to specific customers that were evaluated separately. |
Schedule of Other Current Assets | Other current assets comprised the following: As at February 29, 2024 February 28, 2023 Intellectual property $ — $ 141 Other 47 41 $ 47 $ 182 |
Property, Plant and Equipment | Property, plant and equipment comprised the following: As at February 29, 2024 February 28, 2023 Cost BlackBerry operations and other information technology $ 85 $ 84 Leasehold improvements and other 15 19 Furniture and fixtures 6 9 Manufacturing, repair and research and development equipment 3 2 109 114 Accumulated amortization 88 89 Net book value $ 21 $ 25 |
Intangible Assets | Intangible assets comprised the following: As at February 29, 2024 Cost Accumulated Net Book Acquired technology $ 900 $ 846 $ 54 Other acquired intangibles 386 334 52 Intellectual property 111 63 48 $ 1,397 $ 1,243 $ 154 As at February 28, 2023 Cost Accumulated Net Book Acquired technology $ 900 $ 824 $ 76 Other acquired intangibles 386 318 68 Intellectual property 123 64 59 $ 1,409 $ 1,206 $ 203 |
Intangible Assets, Weighted Average Remaining Useful Lives | The weighted average remaining useful lives of the intangible assets are as follows: As at February 29, 2024 February 28, 2023 Acquired technology 3.3 years 4.0 years Other acquired intangibles 3.6 years 4.5 years Intellectual property 6.1 years 6.8 years |
Changes to Carrying Amount of Goodwill | Changes to the carrying amount of goodwill during the fiscal years ended February 29, 2024, February 28, 2023 and February 28, 2022 were as follows: Carrying Amount Carrying amount as at February 29, 2021 $ 849 Effect of foreign exchange on non-U.S. dollar denominated goodwill (5) Carrying amount as at February 28, 2022 844 Goodwill impairment charge (note 3) (245) Effect of foreign exchange on non-U.S. dollar denominated goodwill (4) Carrying amount as at February 28, 2023 595 Effect of foreign exchange on non-U.S. dollar denominated goodwill 2 Goodwill impairment charge (note 3) (35) Carrying amount as at February 29, 2024 $ 562 |
Accrued Liabilities | Accrued liabilities comprised the following: As at February 29, 2024 February 28, 2023 Operating lease liabilities, current (note 11) 20 24 Restructuring programs, current portion 20 3 Other 77 116 $ 117 $ 143 |
Schedule of Company's Restructuring | The following table sets forth the activity in the Company’s restructuring program liabilities for fiscal 2024 and fiscal 2023: Employee Facilities Total Balance as at February 28, 2022 $ — $ — $ — Charges incurred 8 2 10 Cash payments made (6) (1) (7) Balance as at February 28, 2023 2 1 3 Charges incurred 31 6 37 Cash payments made (16) (3) (19) Balance as at February 29, 2024 $ 17 $ 4 $ 21 Current portion $ 17 $ 3 $ 20 Long-term portion — 1 1 $ 17 $ 4 $ 21 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Feb. 29, 2024 | |
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, 2024 February 28, 2023 February 28, 2022 Statutory Canadian tax rate 26.5 % 26.5 % 26.5 % Expected provision for (recovery of) income taxes $ (28) $ (191) $ 5 Differences in income taxes resulting from: Valuation allowance 28 125 (9) Investment tax credits (11) (10) 7 Change in unrecognized income tax benefits (1) 1 (2) Foreign tax rate differences 4 10 3 Non-deductible permanent differences 8 5 3 Goodwill impairment 9 65 — Prior period adjustments 9 4 (1) Other differences 6 5 1 $ 24 $ 14 $ 7 |
Income (Loss) from Continuing Operations Before Income Taxes | For the Years Ended February 29, 2024 February 28, 2023 February 28, 2022 Income (loss) before income taxes: Canadian $ (18) $ (128) $ 133 Foreign (88) (592) (114) $ (106) $ (720) $ 19 |
Provision for Income Taxes from Continuing Operations | The provision for (recovery of) income taxes consists of the following: For the Years Ended February 29, 2024 February 28, 2023 February 28, 2022 Current Canadian $ 2 $ 1 $ (1) Foreign 22 13 8 $ 24 $ 14 $ 7 |
Components of Deferred Income Tax Assets and Liabilities | Deferred income tax assets and liabilities consist of the following temporary differences: As at February 29, 2024 February 28, 2023 Assets Property, plant, equipment and intangibles assets $ 258 $ 264 Non-deductible reserves 37 44 Minimum taxes 207 207 Debentures (note 6) — 1 Research and development 402 390 Tax loss carryforwards 514 495 Other 125 122 Deferred income tax assets 1,543 1,523 Valuation allowance 1,520 1,492 Deferred income tax assets net of valuation allowance 23 31 Liabilities Property, plant, equipment and intangibles assets (23) (31) Deferred income tax liabilities (23) (31) Net deferred income tax asset (liability) $ — $ — |
Reconciliation of Beginning and Ending Amount of Unrecognized Income Tax Benefits | The Company’s total unrecognized income tax benefits as at February 29, 2024 and February 28, 2023 were $20 million and $21 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, 2024 February 28, 2023 February 28, 2022 Unrecognized income tax benefits, opening balance $ 21 $ 20 $ 24 Increase for income tax positions of current year 1 1 — Settlement of tax positions (2) — (4) Unrecognized income tax benefits, ending balance $ 20 $ 21 $ 20 |
Summary of Open Tax Years by Major Jurisdiction | A summary of open tax years by major jurisdiction is presented below: Jurisdiction Canada (1) Fiscal 2016 - 2024 United States (2) Fiscal 2021 - 2024 United Kingdom Fiscal 2023 - 2024 ______________________________ (1) Includes federal as well as provincial jurisdictions, as applicable. (2) Pertains to federal tax years. Certain state jurisdictions remain open from fiscal 2020 through fiscal 2024. |
Summary of Net Operating Losses and Tax Credits Carryforward | As at February 29, 2024, 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 Research and Development Tax Credits (1) Minimum Taxes 2029 $ 10 $ — $ 1 2030 — — 108 2031 1 12 72 2032 28 1 22 2033 88 133 — 2034 96 124 — 2035 92 52 4 2036 326 40 — 2037 492 23 — 2038 199 17 — 2039 13 14 — 2040 3 13 — 2041 — 8 — 2042 — 11 — 2043 182 14 — 2044 — 12 — Indefinite 422 22 — $ 1,952 $ 496 $ 207 ______________________________ (1) Includes federal, provincial and state balances. |
Debentures (Tables)
Debentures (Tables) | 12 Months Ended |
Feb. 29, 2024 | |
Debt Disclosure [Abstract] | |
Debenture - impact of changes in fair value | The following table shows the impact of the changes in fair value of the Extension Debentures and 2020 Debentures for the years ended February 29, 2024, February 28, 2023 and February 28, 2022: For the Years Ended February 29, 2024 February 28, 2023 February 28, 2022 Income associated with the change in fair value from non-credit components recorded in the consolidated statements of operations $ 2 $ 138 $ 212 Income associated with the change in fair value from instrument-specific credit components recorded in AOCL — 2 1 Realized losses associated with the change in fair value from credit components recorded in the consolidated statements of operations on maturity of the Extension Debentures and 2020 Debentures (6) — — Realized losses associated with the change in fair value from credit components released from AOCL on maturity of the Extension Debentures and 2020 Debentures 6 — — Total decrease in the fair value of the Extension Debentures and 2020 Debentures $ 2 $ 140 $ 213 |
Convertible Debt | The following table summarizes the change in the Notes for the fiscal year ended February 29, 2024 from their date of issuance: As at February 29, 2024 Principal received as of January 29, 2024 200 Debt issuance costs paid (6) Balance as at February 29, 2024 $ 194 |
Schedule of Debt | The following table summarizes the change in fair value of the Extension Debentures from their date of issuance, which also represents the total changes through earnings of items classified as Level 2 in the fair value hierarchy: February 29, 2024 Principal received as of November 17, 2023 $ 150 Change in fair value of the Extension Debentures — Maturity of the Extension Debentures on February 15, 2024 (150) Balance as at February 29, 2024 $ — The following table summarizes the change in fair value of the 2020 Debentures for the years ended February 29, 2024 and February 28, 2023 which also represents the total changes through earnings of items classified as Level 3 in the fair value hierarchy: February 29, 2024 Balance as at February 28, 2022 $ 507 Change in fair value of the 2020 Debentures (140) Balance as at February 28, 2023 367 Change in fair value of the 2020 Debentures (2) Maturity of the 2020 Debentures on November 13, 2023 (365) Balance as at February 29, 2024 $ — |
Capital Stock (Tables)
Capital Stock (Tables) | 12 Months Ended |
Feb. 29, 2024 | |
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, 2024, February 28, 2023 and February 28, 2022: Capital Stock and Stock Amount Common shares outstanding as at February 28, 2021 565,505 $ 2,823 Exercise of stock options 555 3 Common shares issued for restricted share unit settlements 8,011 — Stock-based compensation — 36 Common shares issued related to Exchange Shares 1,422 — Common shares issued for employee share purchase plan 735 7 Common shares outstanding as at February 28, 2022 576,228 2,869 Exercise of stock options 97 — Common shares issued for restricted share unit settlements 4,872 — Stock-based compensation — 34 Common shares issued for employee share purchase plan 960 6 Common shares outstanding as at February 28, 2023 582,157 2,909 Exercise of stock options 106 — Common shares issued for restricted share unit settlements 5,636 — Stock-based compensation — 33 Common shares issued on the redemption of deferred share units 297 1 Common shares issued for employee share purchase plan 1,037 5 Common shares outstanding as at February 29, 2024 589,233 $ 2,948 Common shares (the “Exchange Shares”) were issued in connection with the Cylance acquisition, which was completed on February 21, 2019. In lieu of cash, a portion of the consideration owed to certain Cylance shareholders was paid in equal installments of Exchange Shares on the first three anniversary dates of the closing. |
Restricted Share Unit Activity | A summary of RSU activity during fiscal 2024 is shown below: RSUs Outstanding Number Weighted Average Aggregate Balance as at February 28, 2023 19,640 $ 5.92 Granted during the year 8,097 3.51 Vested during the year (5,636) 6.76 Forfeited/cancelled during the year (5,800) 6.31 Balance as at February 29, 2024 16,301 $ 4.30 1.68 $ 45 Expected to vest February 29, 2024 13,491 $ 4.29 1.66 $ 38 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Feb. 29, 2024 | |
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, 2024 February 28, 2023 February 28, 2022 Net income (loss) for basic earnings (loss) per share available to common shareholders $ (130) $ (734) $ 12 Less: Debentures fair value adjustment (1) (2) — (138) (212) Add: interest expense on Debentures (1) (2) — 6 6 Net loss for diluted loss per share available to common shareholders $ (130) $ (866) $ (194) Weighted average number of shares outstanding (000’s) - basic (1)(3) 584,543 578,654 570,607 Effect of dilutive securities (000’s) Conversion of 2020 Debentures (1) (2) — 60,833 60,833 Weighted average number of shares and assumed conversions (000’s) diluted 584,543 639,487 631,440 Earnings (loss) per share - reported Basic $ (0.22) $ (1.27) $ 0.02 Diluted $ (0.22) $ (1.35) $ (0.31) ______________________________ (1) The Company has not presented the dilutive effect of the Notes, Extension Debentures or 2020 Debentures using the if-converted method in the calculation of diluted loss per share for the year ended February 29, 2024, as to do so would be antidilutive. See Note 6 for details on the Debentures. (2) The Company has presented the dilutive effect of the 2020 Debentures using the if-converted method, assuming conversion at the beginning of the fiscal year for the years ended February 28, 2023 and February 28, 2022. Accordingly, to calculate diluted loss per share, the Company adjusted net income (loss) by eliminating the fair value adjustment made to the 2020 Debentures and interest expense incurred on the 2020 Debentures in the years ended February 28, 2023 and February 28, 2022, and added the number of shares that would have been issued upon conversion to the diluted weighted average number of shares outstanding. See Note 6 for details on the 2020 Debentures. (3) 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 loss per share for the years ended February 29, 2024, February 28, 2023 and February 28, 2022 as to do so would be antidilutive. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Feb. 29, 2024 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Loss | The changes in AOCL by component net of tax, for the years ended February 29, 2024, February 28, 2023 and February 28, 2022 were as follows: As At February 29, 2024 February 28, 2023 February 28, 2022 Cash Flow Hedges Balance, beginning of period $ (1) $ — $ 1 Other comprehensive loss before reclassification — (3) — Amounts reclassified from AOCL into net income (loss) 1 2 (1) Accumulated net unrealized losses on derivative instruments designated as cash flow hedges $ — $ (1) $ — Foreign Currency Cumulative Translation Adjustment Balance, beginning of period $ (16) $ (10) $ (4) Other comprehensive income (loss) 2 (6) (6) Foreign currency cumulative translation adjustment $ (14) $ (16) $ (10) Change in Fair Value From Instrument-Specific Credit Risk On Debentures Balance, beginning of period $ (6) $ (8) $ (9) Other comprehensive income before reclassification — 2 1 Amounts reclassified from AOCL into net income (loss) 6 — — Change in fair value from instruments-specific credit risk on Debentures $ — $ (6) $ (8) Other Post-Employment Benefit Obligations Balance, beginning of period $ (1) $ (1) $ (1) Other comprehensive income 1 — — Actuarial losses associated with other post-employment benefit obligations $ — $ (1) $ (1) Accumulated Other Comprehensive Loss, End of Period $ (14) $ (24) $ (19) |
Leases, Codification Topic 842
Leases, Codification Topic 842 (Tables) | 12 Months Ended |
Feb. 29, 2024 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense were as follows: For the Years Ended February 29, 2024 February 28, 2023 February 28, 2022 Operating lease cost, included in general and administrative $ 18 $ 20 $ 23 |
Schedule of Cash Flow Lease, Supplemental Disclosures | For the Years Ended February 29, 2024 February 28, 2023 February 28, 2022 Cash used in operating activities related to operating lease payments $ 28 $ 32 $ 37 |
Balance Sheet Information Related to Leases | Supplemental consolidated balance sheet information related to leases was as follows: As at February 29, 2024 February 28, 2023 Operating leases Operating lease assets Operating lease ROU assets $ 32 $ 44 Operating lease liabilities Accrued liabilities $ 20 $ 24 Operating lease liabilities 38 52 Total operating lease liabilities $ 58 $ 76 |
Lease Weighted Average Remaining Lease term and Weighted Average Discount Rate | As at February 29, 2024 February 28, 2023 Weighted average remaining lease term Operating leases 3.2 years 3.8 years Weighted average discount rate Operating lease 3.9 % 3.4 % |
Lessee, Operating Lease, Liability, Maturity | Maturities of undiscounted lease liabilities were as follows: As at February 29, 2024 Operating Leases Fiscal year 2025 $ 23 Fiscal year 2026 18 Fiscal year 2027 12 Fiscal year 2028 10 Fiscal year 2029 1 Thereafter 1 Total future minimum lease payments 65 Less: Imputed interest (7) Total $ 58 |
Revenue and Segment Disclosure
Revenue and Segment Disclosure (Tables) | 12 Months Ended |
Feb. 29, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following table shows information by operating segment for the fiscal year ended February 29, 2024: Cybersecurity IoT Licensing and Other Segment Totals Segment revenue $ 378 $ 215 $ 260 $ 853 Segment cost of sales 142 36 152 330 Segment gross margin (1) $ 236 $ 179 $ 108 $ 523 ______________________________ (1) A reconciliation of total segment gross margin to consolidated totals is set forth below. The following table shows information by operating segment for the fiscal year ended February 28, 2023 and February 28, 2022: For the Year Ended February 28, 2023 February 28, 2022 Cybersecurity IoT Licensing and Other Segment Totals Cybersecurity IoT Licensing and Other Segment Totals Segment revenue $ 418 $ 206 $ 32 $ 656 $ 477 $ 178 $ 63 $ 718 Segment cost of sales 185 37 12 234 194 30 23 247 Segment gross margin (1) $ 233 $ 169 $ 20 $ 422 $ 283 $ 148 $ 40 $ 471 ______________________________ (1) A reconciliation of total segment gross margin to consolidated totals is set forth below. |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | The following table reconciles total segment gross margin for the fiscal year ended February 29, 2024, February 28, 2023 and February 28, 2022 to the Company’s consolidated totals: For the Years Ended February 29, 2024 February 28, 2023 February 28, 2022 Total segment gross margin 523 $ 422 $ 471 Adjustments (1) : Less: Stock compensation 3 3 4 Less: Research & development 186 207 219 Sales and marketing 171 176 183 General and administrative 181 164 114 Amortization 54 96 165 Impairment of long-lived assets 15 235 — Impairment of goodwill 35 245 — Gain on sale of property, plant and equipment, net — (6) — Debentures fair value adjustment 3 (138) (212) Litigation settlement — 165 — Investment income, net (19) (5) (21) Consolidated income (loss) before income taxes $ (106) $ (720) $ 19 ______________________________ (1) The CODM reviews segment information on an adjusted basis, which excludes certain amounts as described below: Stock compensation expenses - Equity compensation is a non-cash expense and does not impact the ongoing operating decisions taken by the Company’s management. |
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, 2024 February 28, 2023 February 28, 2022 North America (1) $ 556 65.2 % $ 350 53.4 % $ 413 57.5 % Europe, Middle East and Africa 172 20.2 % 222 33.8 % 234 32.6 % Other regions 125 14.6 % 84 12.8 % 71 9.9 % Total $ 853 100.0 % $ 656 100.0 % $ 718 100.0 % ______________________________ ( 1) 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 Classified by Timing of Recognition | Revenue, classified by timing of recognition, was as follows: For the Year Ended February 29, 2024 February 28, 2023 February 28, 2022 Products and services transferred over time $ 279 $ 364 $ 428 Products and services transferred at a point in time 574 292 290 Total $ 853 $ 656 $ 718 |
Revenue Contract Balances | The following table sets forth the activity in the Company’s revenue contract balances for the fiscal year ended February 29, 2024: Accounts Receivable Deferred Revenue Deferred Commissions Opening balance as at February 28, 2023 $ 120 $ 215 $ 17 Increases due to invoicing of new or existing contracts, associated contract acquisition costs, or other 939 605 32 Decrease due to payment, fulfillment of performance obligations, or other (804) (598) (28) Increase, net 135 7 4 Closing balance as at February 29, 2024 $ 255 $ 222 $ 21 |
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, 2024 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. The disclosure excludes estimates of variable consideration relating to future royalty revenues from the Malikie Transaction, which have been constrained based on the Company’s accounting policies and critical accounting estimates as described in Note 1 and under “Patent Sale” in this Note 12. As at February 29, 2024 Less than 12 Months 12 to 24 Months Thereafter Total Remaining performance obligations $ 194 $ 14 $ 14 $ 222 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | Property, plant and equipment, intangible assets, operating lease ROU assets and goodwill, classified by geographic region in which the Company’s assets are located, were as follows: As at February 29, 2024 February 28, 2023 Property, Plant and Equipment, Intangible Assets, Operating Lease ROU Assets and Goodwill Total Assets Property, Plant and Equipment, Intangible Assets, Operating Lease ROU Assets and Goodwill Total Assets Canada $ 78 $ 342 $ 98 $ 375 United States 662 923 742 1,208 Other 29 130 27 96 $ 769 $ 1,395 $ 867 $ 1,679 |
Cash Flow and Additional Info_2
Cash Flow and Additional Information (Tables) | 12 Months Ended |
Feb. 29, 2024 | |
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, 2024 February 28, 2023 February 28, 2022 Interest paid during the year $ 6 $ 6 $ 6 Income taxes paid during the year 10 2 5 Income tax refunds received during the year 1 5 6 |
Blackberry Limited and Summar_4
Blackberry Limited and Summary of Significant Accounting Policies and Critical Accounting Estimates - Additional Information (Details) endpoint in Millions | 12 Months Ended |
Feb. 29, 2024 operatingSegment endpoint | |
Additional Information [Line Items] | |
Number of endpoints secured, vehicles | endpoint | 235 |
Number of Operating Segments | operatingSegment | 3 |
Liability for uncertain income tax positions, percentage minimum | 50% |
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_5
Blackberry Limited and Summary of Significant Accounting Policies and Critical Accounting Estimates - Property, plant and equipment, net (Details) | 12 Months Ended |
Feb. 29, 2024 | |
Leasehold improvements and other | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
Leasehold improvements and other | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 15 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 | 30% |
Blackberry Limited and Summar_6
Blackberry Limited and Summary of Significant Accounting Policies and Critical Accounting Estimates - Schedule of Finite-Lived Intangible Assets (Details) | Feb. 29, 2024 |
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 | 25 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_7
Blackberry Limited and Summary of Significant Accounting Policies and Critical Accounting Estimates - Revenue Recognition, Multiple-Deliverable Arrangements (Details) | 12 Months Ended |
Feb. 29, 2024 | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |
Term Subscription Contract Duration | 4 years |
Software maintenance revenue term | 1 year |
Maximum | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |
License Revenue Term - BlackBerry Spark | 3 years |
Minimum | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |
License Revenue Term - BlackBerry Spark | 1 year |
Blackberry Limited and Summar_8
Blackberry Limited and Summary of Significant Accounting Policies and Critical Accounting Estimates - Stock-based Compensation (Details) | 12 Months Ended |
Feb. 29, 2024 shares | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of common shares authorized under the Equity Plan (in shares) | 45,875,000 |
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 |
Shares in the equity pool available for future grants | 8,000,000 |
TBRSU Share Limit | 1 |
PBRSU Share Limit | 1.5 |
Blackberry Limited and Summar_9
Blackberry Limited and Summary of Significant Accounting Policies and Critical Accounting Estimates - Vesting Scenarios (Details) | 12 Months Ended |
Feb. 29, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
RSUs vesting period | 3 years |
Fair Value Measurements - Non-R
Fair Value Measurements - Non-Recurring Fair Value Measurements (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 28, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment of long-lived assets (note 3) | $ 15 | $ 235 | $ 0 |
Impairment Of Right of Use Assets | 7 | 4 | 0 |
Impairment of goodwill | 35 | 245 | $ 0 |
Patent Abandonment, Cost | 15 | ||
Patent Abandonment, Accumulated Amortization | 7 | ||
Patent Abandonment classified as impairment of LLA, Net Book Value | 8 | ||
Other Intangible Assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment of long-lived assets (note 3) | $ 8 | $ 231 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Changes in Fair Value of Company's Level 3 Assets (Detail) | 12 Months Ended |
Feb. 29, 2024 | |
Cash and Cash Equivalents [Abstract] | |
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, 2024 | Feb. 28, 2023 | Feb. 28, 2022 | |||
Cash and Cash Equivalents [Line Items] | |||||
Cost Basis | $ 302 | $ 491 | |||
Unrealized Gains | 6 | 6 | |||
Unrealized Losses | 10 | 10 | |||
Fair Value | 298 | 487 | |||
Cash and cash equivalents (note 3) | 175 | 295 | $ 378 | ||
Short-term Investments | 62 | 131 | |||
Long-term investments | 36 | 34 | |||
Restricted Cash and Cash Equivalents | 25 | 27 | $ 28 | ||
Bank balances | |||||
Cash and Cash Equivalents [Line Items] | |||||
Cost Basis | 96 | 89 | |||
Unrealized Gains | 0 | 0 | |||
Unrealized Losses | 0 | 0 | |||
Fair Value | 96 | 89 | |||
Cash and cash equivalents (note 3) | 96 | 87 | |||
Short-term Investments | 0 | 0 | |||
Long-term investments | 0 | 0 | |||
Restricted Cash and Cash Equivalents | 0 | 2 | |||
Other investments | |||||
Cash and Cash Equivalents [Line Items] | |||||
Cost Basis | 30 | [1] | 26 | [2] | |
Unrealized Gains | 6 | 2 | |||
Unrealized Losses | 0 | 0 | |||
Fair Value | 36 | 28 | |||
Cash and cash equivalents (note 3) | 0 | 0 | |||
Short-term Investments | 0 | 0 | |||
Long-term investments | 36 | 28 | |||
Restricted Cash and Cash Equivalents | 0 | 0 | |||
Bank Balances and Other Investments [Domain] | |||||
Cash and Cash Equivalents [Line Items] | |||||
Cost Basis | 126 | 115 | |||
Unrealized Gains | 6 | 2 | |||
Unrealized Losses | 0 | 0 | |||
Fair Value | 132 | 117 | |||
Cash and cash equivalents (note 3) | 96 | 87 | |||
Short-term Investments | 0 | 0 | |||
Long-term investments | 36 | 28 | |||
Restricted Cash and Cash Equivalents | 0 | 2 | |||
Level 1: | Equity securities | |||||
Cash and Cash Equivalents [Line Items] | |||||
Cost Basis | 10 | 10 | |||
Equity Securities, FV-NI, Unrealized Gain | 0 | 0 | |||
Equity Securities, FV-NI, Unrealized Loss | (10) | (10) | |||
Fair Value | 0 | 0 | |||
Cash and cash equivalents (note 3) | 0 | 0 | |||
Short-term Investments | 0 | 0 | |||
Long-term investments | 0 | 0 | |||
Restricted Cash and Cash Equivalents | 0 | 0 | |||
Level 2: | |||||
Cash and Cash Equivalents [Line Items] | |||||
Cost Basis | 166 | 364 | |||
Debt Securities, Available-for-sale, Unrealized Gain | 0 | 0 | |||
Debt Securities, Available-for-sale, Unrealized Loss | 0 | 0 | |||
Fair Value | 166 | 364 | |||
Cash and cash equivalents (note 3) | 79 | 208 | |||
Short-term Investments | 62 | 131 | |||
Long-term investments | 0 | 0 | |||
Restricted Cash and Cash Equivalents | 25 | 25 | |||
Level 2: | Term deposits, and certificates of deposits | |||||
Cash and Cash Equivalents [Line Items] | |||||
Cost Basis | 21 | 33 | |||
Debt Securities, Available-for-sale, Unrealized Gain | 0 | 0 | |||
Debt Securities, Available-for-sale, Unrealized Loss | 0 | 0 | |||
Fair Value | 21 | 33 | |||
Cash and cash equivalents (note 3) | 0 | 8 | |||
Short-term Investments | 0 | 0 | |||
Long-term investments | 0 | 0 | |||
Restricted Cash and Cash Equivalents | 21 | 25 | |||
Level 2: | Bearer deposit notes | |||||
Cash and Cash Equivalents [Line Items] | |||||
Cost Basis | 53 | 82 | |||
Debt Securities, Available-for-sale, Unrealized Gain | 0 | 0 | |||
Debt Securities, Available-for-sale, Unrealized Loss | 0 | 0 | |||
Fair Value | 53 | 82 | |||
Cash and cash equivalents (note 3) | 28 | 82 | |||
Short-term Investments | 25 | 0 | |||
Long-term investments | 0 | 0 | |||
Restricted Cash and Cash Equivalents | 0 | 0 | |||
Level 2: | Commercial paper | |||||
Cash and Cash Equivalents [Line Items] | |||||
Cost Basis | 47 | 159 | |||
Debt Securities, Available-for-sale, Unrealized Gain | 0 | 0 | |||
Debt Securities, Available-for-sale, Unrealized Loss | 0 | 0 | |||
Fair Value | 47 | 159 | |||
Cash and cash equivalents (note 3) | 15 | 108 | |||
Short-term Investments | 32 | 51 | |||
Long-term investments | 0 | 0 | |||
Restricted Cash and Cash Equivalents | 0 | 0 | |||
Level 2: | Non-U.S. promissory notes | |||||
Cash and Cash Equivalents [Line Items] | |||||
Cost Basis | 35 | 45 | |||
Debt Securities, Available-for-sale, Unrealized Gain | 0 | 0 | |||
Debt Securities, Available-for-sale, Unrealized Loss | 0 | 0 | |||
Fair Value | 35 | 45 | |||
Cash and cash equivalents (note 3) | 30 | 0 | |||
Short-term Investments | 5 | 45 | |||
Long-term investments | 0 | 0 | |||
Restricted Cash and Cash Equivalents | 0 | 0 | |||
Level 2: | Non-U.S. government sponsored enterprise notes | |||||
Cash and Cash Equivalents [Line Items] | |||||
Cost Basis | 30 | ||||
Debt Securities, Available-for-sale, Unrealized Gain | 0 | ||||
Debt Securities, Available-for-sale, Unrealized Loss | 0 | ||||
Fair Value | 30 | ||||
Cash and cash equivalents (note 3) | 10 | ||||
Short-term Investments | 20 | ||||
Long-term investments | 0 | ||||
Restricted Cash and Cash Equivalents | 0 | ||||
Level 2: | U.S. treasury bills | |||||
Cash and Cash Equivalents [Line Items] | |||||
Cost Basis | 10 | ||||
Unrealized Gains | 0 | ||||
Unrealized Losses | 0 | ||||
Fair Value | 10 | ||||
Cash and cash equivalents (note 3) | 6 | ||||
Short-term Investments | 0 | ||||
Long-term investments | 0 | ||||
Restricted Cash and Cash Equivalents | $ 4 | ||||
Level 2: | Corporate notes/bonds | |||||
Cash and Cash Equivalents [Line Items] | |||||
Cost Basis | 15 | ||||
Debt Securities, Available-for-sale, Unrealized Gain | 0 | ||||
Debt Securities, Available-for-sale, Unrealized Loss | 0 | ||||
Fair Value | 15 | ||||
Cash and cash equivalents (note 3) | 0 | ||||
Short-term Investments | 15 | ||||
Long-term investments | 0 | ||||
Restricted Cash and Cash Equivalents | 0 | ||||
Level 3: | Other investments | |||||
Cash and Cash Equivalents [Line Items] | |||||
Cost Basis | 2 | ||||
Equity Securities without Readily Determinable Fair Value, Downward Price Adjustment, Annual Amount | 0 | ||||
Fair Value | 6 | ||||
Cash and cash equivalents (note 3) | 0 | ||||
Short-term Investments | 0 | ||||
Long-term investments | 6 | ||||
Restricted Cash and Cash Equivalents | 0 | ||||
Equity Securities without Readily Determinable Fair Value, Upward Price Adjustment, Annual Amount | $ 4 | ||||
[1]Cost basis for other investments includes the effect of returns of capital and impairment.[2]Cost basis for other investments includes the effect of returns of capital and impairment. |
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, 2024 | Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2021 |
Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents (note 3) | $ 175 | $ 295 | $ 378 | |
Restricted Cash and Cash Equivalents | 25 | 27 | 28 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Total | $ 200 | $ 322 | $ 406 | $ 218 |
Cash, Cash Equivalents and In_2
Cash, Cash Equivalents and Investments - Contractual Maturities of Available-for-Sale Investments (Details) - USD ($) $ in Millions | Feb. 29, 2024 | Feb. 28, 2023 |
Cost Basis | ||
Due in one year or less | $ 166 | $ 364 |
No fixed maturity | 10 | 10 |
Total | 176 | 374 |
Fair Value | ||
Due in one year or less | 166 | 364 |
No fixed maturity | 0 | 0 |
Total | $ 166 | $ 364 |
Cash, Cash Equivalents and In_3
Cash, Cash Equivalents and Investments - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 28, 2022 | |
Cash and Cash Equivalents [Line Items] | |||
Equity Investment without Readily Determinable Fair Value | $ 36 | $ 34 | |
Impairment on non-marketable equity investments without readily determinable fair value | 0 | 0 | $ 0 |
Proceeds on sale, maturity or distribution from long-term investments | 0 | 0 | 35 |
Return of capital on Limited Partnership Investments | 13 | ||
Realized gains (losses) on non-marketable equity investments without readily determinable fair value sold during the period | 22 | ||
Debt Securities, Available-for-sale, Realized Gain (Loss) | 0 | 0 | $ 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 | |
Equity Securities without Readily Determinable Fair Value, Impairment Loss, Cumulative Amount | $ 3 | $ 3 | |
Minimum | |||
Cash and Cash Equivalents [Line Items] | |||
Lease term | 1 month | ||
Maximum | |||
Cash and Cash Equivalents [Line Items] | |||
Lease term | 2 years |
Consolidated Balance Sheets D_3
Consolidated Balance Sheets Details - Accounts Receivable (Details) $ in Millions | 12 Months Ended | |||
Feb. 29, 2024 USD ($) | Feb. 28, 2023 USD ($) | Feb. 28, 2022 USD ($) | Feb. 28, 2021 USD ($) | |
Balance Sheet Related Disclosures [Abstract] | ||||
Allowance for doubtful accounts receivable, current | $ 6 | $ 1 | ||
Accounts Receivable, Allowance for Credit Loss, Relating to CECL Estimated Based on Days Past Due and Region | 1 | 1 | ||
Accounts Receivable, Allowance for Credit Loss, Relating to Customers Evaluated Separately | $ 5 | $ 0 | ||
Number of customers with a balance greater than 10% of total accounts receivable | 2 | 2 | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Accounts Receivable, Allowance for Credit Loss, Beginning Balance | $ 1 | $ 4 | ||
Accounts Receivable, Allowance for Credit Loss, Period Increase (Decrease) | 5 | 1 | ||
Accounts Receivable, Allowance for Credit Loss, Writeoff | 4 | |||
Accounts Receivable, Allowance for Credit Loss, Ending Balance | 6 | 1 | ||
Stockholders' Equity Attributable to Parent | $ (776) | $ (857) | $ (1,556) | $ (1,504) |
Consolidated Balance Sheets D_4
Consolidated Balance Sheets Details - Other Current Assets (Details) $ in Millions | 12 Months Ended | ||
Feb. 29, 2024 USD ($) other_current_asset | Feb. 28, 2023 USD ($) other_current_asset | Feb. 28, 2022 USD ($) | |
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Other current assets greater than five percent of current assets | other_current_asset | 0 | 0 | |
Revenue recognized on patent sale | $ 218 | ||
Intellectual property disposed of by sale | 147 | $ 0 | $ 0 |
Intellectual Property included in Other Current Assets | 0 | 141 | |
Patent maintenance on intellectual property sold | 6 | ||
Other Current Assets - Other Amounts | 47 | 41 | |
Other current assets (note 4) | $ 47 | $ 182 |
Consolidated Balance Sheets D_5
Consolidated Balance Sheets Detail - Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 28, 2022 | |
Property, Plant and Equipment [Line Items] | |||
Cost of property, plant and equipment | $ 109 | $ 114 | |
Accumulated amortization | 88 | 89 | |
Net book value | 21 | 25 | |
Depreciation | 10 | 12 | $ 15 |
BlackBerry operations and other information technology | |||
Property, Plant and Equipment [Line Items] | |||
Cost of property, plant and equipment | 15 | 19 | |
Leasehold improvements and other | |||
Property, Plant and Equipment [Line Items] | |||
Cost of property, plant and equipment | 85 | 84 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Cost of property, plant and equipment | 3 | 2 | |
Manufacturing, repair and research and development equipment | |||
Property, Plant and Equipment [Line Items] | |||
Cost of property, plant and equipment | $ 6 | $ 9 |
Consolidated Balance Sheets D_6
Consolidated Balance Sheets Detail - Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 28, 2022 | |
Finite-Lived Intangible Assets [Line Items] | |||
Cost | $ 1,397 | $ 1,409 | |
Accumulated Amortization | 1,243 | 1,206 | |
Net Book Value | 154 | 203 | |
Amortization expenses related to intangible assets | 49 | 93 | $ 161 |
Intangible assets acquired during the period | 14 | 34 | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Finite-Lived Intangible Asset, Expected Amortization, Year One | 42 | ||
Finite-Lived Intangible Asset, Expected Amortization, Year Two | 36 | ||
Finite-Lived Intangible Asset, Expected Amortization, Year Three | 31 | ||
Finite-Lived Intangible Asset, Expected Amortization, Year Four | 18 | ||
Finite-Lived Intangible Asset, Expected Amortization, Year Five | 6 | ||
Impairment of long-lived assets (note 3) | 15 | 235 | $ 0 |
Other Intangible Assets | |||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Impairment of long-lived assets (note 3) | 8 | 231 | |
Acquired technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Cost | 900 | 900 | |
Accumulated Amortization | 846 | 824 | |
Net Book Value | 54 | 76 | |
Other acquired intangibles | |||
Finite-Lived Intangible Assets [Line Items] | |||
Cost | 386 | 386 | |
Accumulated Amortization | 334 | 318 | |
Net Book Value | 52 | 68 | |
Intellectual property | |||
Finite-Lived Intangible Assets [Line Items] | |||
Cost | 111 | 123 | |
Accumulated Amortization | 63 | 64 | |
Net Book Value | $ 48 | $ 59 |
Consolidated Balance Sheets D_7
Consolidated Balance Sheets Details Consolidated Balance Sheet Details - Intangibles Assets Useful Life (Details) | Feb. 29, 2024 | Feb. 28, 2023 |
Acquired technology | ||
Intangible Assets, Weighted average remaining useful lives [Line Items] | ||
Intangible assets, remaining useful life | 3 years 3 months 18 days | 4 years |
Other acquired intangibles | ||
Intangible Assets, Weighted average remaining useful lives [Line Items] | ||
Intangible assets, remaining useful life | 3 years 7 months 6 days | 4 years 6 months |
Intellectual property | ||
Intangible Assets, Weighted average remaining useful lives [Line Items] | ||
Intangible assets, remaining useful life | 6 years 1 month 6 days | 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, 2024 | Feb. 28, 2023 | Feb. 28, 2022 | |
Goodwill [Roll Forward] | |||
Carrying amount as of beginning of period | $ 595 | $ 844 | $ 849 |
Impairment of goodwill | 35 | 245 | 0 |
Effect of foreign exchange on non-U.S. dollar denominated goodwill | 2 | (4) | (5) |
Carrying amount as of end of period | $ 562 | $ 595 | $ 844 |
Consolidated Balance Sheets D_9
Consolidated Balance Sheets Detail - Accrued Liabilities (Details) - USD ($) $ in Millions | Feb. 29, 2024 | Feb. 28, 2023 |
Balance Sheet Related Disclosures [Abstract] | ||
Operating lease liabilities, current (included in accruals) | $ 20 | $ 24 |
Restructuring Reserve, Current | 20 | 3 |
Other | 77 | 116 |
Accrued liabilities total | $ 117 | $ 143 |
Consolidated Balance Sheets _10
Consolidated Balance Sheets Detail - Additional Information (Details) numberOfAccruedLiabilities in Millions, $ in Millions | 12 Months Ended | ||
Feb. 29, 2024 USD ($) numberOfAccruedLiabilities numberOfOtherLong-termAssets numberOfOtherReceivables | Feb. 28, 2023 USD ($) numberOfAccruedLiabilities numberOfOtherLong-termAssets numberOfOtherReceivables | Feb. 28, 2022 USD ($) | |
Long-Lived Assets to be Abandoned [Line Items] | |||
Other Receivables Greater than Five Percent of Current Assets | numberOfOtherReceivables | 0 | 0 | |
Other Long-Term Assets Greater than Five Percent of Total Assets | numberOfOtherLong-termAssets | 0 | 0 | |
Other accrued liabilities greater than five percent of current liabilities | numberOfAccruedLiabilities | 0 | 0 | |
Proceeds on sale of property, plant and equipment (note 4) | $ 0 | $ 17 | $ 0 |
Gain (Loss) on Disposition of Assets | $ 0 | 6 | $ 0 |
Cost of property, plant and equipment, net, sold | 29 | ||
Accumulated Amortization of property, plant and equipment, net sold | 18 | ||
NBV of property, plant and equipment, net sold | $ 11 |
Consolidated Balance Sheets _11
Consolidated Balance Sheets Details (Details) - Restructuring - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 28, 2022 | |
Restructuring Cost and Reserve | |||
Restructuring reserve | $ 21 | $ 3 | $ 0 |
Charges incurred | 37 | 10 | |
Payments for Restructuring | $ 19 | 7 | |
Interest rate to present value long-term restructuring liability | 5% | ||
Restructuring Reserve, Current | $ 20 | 3 | |
Restructuring Reserve, Noncurrent | $ 1 | ||
Restructuring, Incurred Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | General and administrative | ||
Employee Termination Benefits | |||
Restructuring Cost and Reserve | |||
Restructuring reserve | $ 17 | 2 | 0 |
Charges incurred | 31 | 8 | |
Payments for Restructuring | 16 | 6 | |
Restructuring Reserve, Current | 17 | ||
Restructuring Reserve, Noncurrent | 0 | ||
Facilities Costs | |||
Restructuring Cost and Reserve | |||
Restructuring reserve | 4 | 1 | $ 0 |
Charges incurred | 6 | 2 | |
Payments for Restructuring | 3 | $ 1 | |
Restructuring Reserve, Current | 3 | ||
Restructuring Reserve, Noncurrent | $ 1 |
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, 2024 | Feb. 28, 2023 | Feb. 28, 2022 | |
Income Tax Disclosure [Abstract] | |||
Statutory Canadian tax rate | 26.50% | 26.50% | 26.50% |
Expected provision for (recovery of) income taxes from continuing operations | $ (28) | $ (191) | $ 5 |
Differences in income taxes resulting from: | |||
Valuation allowance | 28 | 125 | (9) |
Investment tax credits | (7) | ||
Investment tax credits | 11 | 10 | |
Change in unrecognized income tax benefits | (1) | 1 | (2) |
Foreign tax rate differences | 4 | 10 | 3 |
Non-deductible permanent difference | 8 | 5 | 3 |
Goodwill impairment | 9 | 65 | 0 |
Effective Income Tax Rate Reconciliation, Prior Period Adjustment | 9 | 4 | (1) |
Other differences | 6 | 5 | 1 |
Provision for (recovery of) income taxes | $ 24 | $ 14 | $ 7 |
Income Taxes - Income (Loss) fr
Income Taxes - Income (Loss) from Continuing Operations Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 28, 2022 | |
Income (loss) before income taxes: | |||
Canadian | $ (18) | $ (128) | $ 133 |
Foreign | (88) | (592) | (114) |
Income (loss) before income taxes | $ (106) | $ (720) | $ 19 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes from Continuing Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 28, 2022 | |
Current | |||
Canadian | $ 2 | $ 1 | $ (1) |
Foreign | 22 | 13 | 8 |
Deferred | |||
Provision for (recovery of) income taxes | $ 24 | $ 14 | $ 7 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Feb. 29, 2024 | Feb. 28, 2023 |
Assets | ||
Property, plant, equipment and intangibles assets | $ 258 | $ 264 |
Non-deductible reserves | 37 | 44 |
Minimum Taxes | 207 | 207 |
Debentures (note 6) | 0 | 1 |
Research and development | 402 | 390 |
Tax loss carryforwards | 514 | 495 |
Other tax carryforwards | 125 | 122 |
Deferred Tax Assets, Gross | 1,543 | 1,523 |
Valuation allowance | 1,520 | 1,492 |
Deferred income tax assets | 23 | 31 |
Liabilities | ||
Property, plant and equipment | (23) | (31) |
Deferred income tax liabilities | 23 | 31 |
Net deferred income tax asset (liability) | $ 0 | $ 0 |
Income Taxes Income Taxes - Val
Income Taxes Income Taxes - Valuation Allowance (Details) - USD ($) $ in Millions | 12 Months Ended | |
Feb. 29, 2024 | Feb. 28, 2023 | |
Income Tax Disclosure [Abstract] | ||
Valuation Allowance, Deferred Tax Asset, Decrease (Increase), Amount | $ (28) | $ (125) |
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, 2024 | Feb. 28, 2023 | Feb. 28, 2022 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized income tax benefits, Beginning balance | $ 21 | $ 20 | $ 24 |
Increase for income tax positions of current year | 1 | 1 | 0 |
Settlement of tax positions | (2) | 0 | (4) |
Unrecognized income tax benefits, Ending balance | $ 20 | $ 21 | $ 20 |
Income Taxes - Summary of Open
Income Taxes - Summary of Open Tax Years by Major Jurisdiction (Details) | 12 Months Ended | |
Feb. 29, 2024 | ||
Minimum | Canada [Member] | ||
Income Tax Examination [Line Items] | ||
Open Tax Year by Major Tax Jurisdictions | 2016 | [1] |
Minimum | United States [Member] | ||
Income Tax Examination [Line Items] | ||
Open Tax Year by Major Tax Jurisdictions | 2021 | [2] |
Minimum | United Kingdom [Member] | ||
Income Tax Examination [Line Items] | ||
Open Tax Year by Major Tax Jurisdictions | 2023 | |
Maximum | Canada [Member] | ||
Income Tax Examination [Line Items] | ||
Open Tax Year by Major Tax Jurisdictions | 2024 | [1] |
Maximum | United States [Member] | ||
Income Tax Examination [Line Items] | ||
Open Tax Year by Major Tax Jurisdictions | 2024 | [2] |
Maximum | United Kingdom [Member] | ||
Income Tax Examination [Line Items] | ||
Open Tax Year by Major Tax Jurisdictions | 2024 | |
[1] Includes federal as well as provincial jurisdictions, as applicable. Pertains to federal tax years. Certain state jurisdictions remain open from fiscal 2020 through fiscal 2024. |
Income Taxes Income Taxes - Sum
Income Taxes Income Taxes - Summary of Net Operating Loss and Tax Credits Carryforwards (Details) - USD ($) $ in Millions | Feb. 29, 2024 | Feb. 28, 2023 | |
Tax Credit Carryforward [Line Items] | |||
Operating Loss Carryforwards | $ 1,952 | ||
Research and development tax credit | [1] | 496 | |
Minimum Taxes | 207 | $ 207 | |
Tax Year 2029 | |||
Tax Credit Carryforward [Line Items] | |||
Operating Loss Carryforwards | 10 | ||
Research and development tax credit | [1] | 0 | |
Minimum Taxes | 1 | ||
Tax Year 2030 | |||
Tax Credit Carryforward [Line Items] | |||
Operating Loss Carryforwards | 0 | ||
Research and development tax credit | [1] | 0 | |
Minimum Taxes | 108 | ||
Tax Year 2031 | |||
Tax Credit Carryforward [Line Items] | |||
Operating Loss Carryforwards | 1 | ||
Research and development tax credit | [1] | 12 | |
Minimum Taxes | 72 | ||
Tax Year 2032 | |||
Tax Credit Carryforward [Line Items] | |||
Operating Loss Carryforwards | 28 | ||
Research and development tax credit | [1] | 1 | |
Minimum Taxes | 22 | ||
Tax Year 2033 | |||
Tax Credit Carryforward [Line Items] | |||
Operating Loss Carryforwards | 88 | ||
Research and development tax credit | [1] | 133 | |
Minimum Taxes | 0 | ||
Tax Year 2034 | |||
Tax Credit Carryforward [Line Items] | |||
Operating Loss Carryforwards | 96 | ||
Research and development tax credit | [1] | 124 | |
Minimum Taxes | 0 | ||
Tax Year 2035 | |||
Tax Credit Carryforward [Line Items] | |||
Operating Loss Carryforwards | 92 | ||
Research and development tax credit | [1] | 52 | |
Minimum Taxes | 4 | ||
Tax Year 2036 | |||
Tax Credit Carryforward [Line Items] | |||
Operating Loss Carryforwards | 326 | ||
Research and development tax credit | [1] | 40 | |
Minimum Taxes | 0 | ||
Tax Year 2037 | |||
Tax Credit Carryforward [Line Items] | |||
Operating Loss Carryforwards | 492 | ||
Research and development tax credit | [1] | 23 | |
Minimum Taxes | 0 | ||
Tax Year 2038 | |||
Tax Credit Carryforward [Line Items] | |||
Operating Loss Carryforwards | 199 | ||
Research and development tax credit | [1] | 17 | |
Minimum Taxes | 0 | ||
Tax Year 2039 [Member] | |||
Tax Credit Carryforward [Line Items] | |||
Operating Loss Carryforwards | 13 | ||
Research and development tax credit | [1] | 14 | |
Minimum Taxes | 0 | ||
Tax Year 2040 | |||
Tax Credit Carryforward [Line Items] | |||
Operating Loss Carryforwards | 3 | ||
Research and development tax credit | [1] | 13 | |
Minimum Taxes | 0 | ||
Tax Year 2041 | |||
Tax Credit Carryforward [Line Items] | |||
Operating Loss Carryforwards | 0 | ||
Research and development tax credit | [1] | 8 | |
Minimum Taxes | 0 | ||
Tax Year 2042 | |||
Tax Credit Carryforward [Line Items] | |||
Operating Loss Carryforwards | 0 | ||
Research and development tax credit | [1] | 11 | |
Minimum Taxes | 0 | ||
Tax Year 2043 | |||
Tax Credit Carryforward [Line Items] | |||
Operating Loss Carryforwards | 182 | ||
Research and development tax credit | [1] | 14 | |
Minimum Taxes | 0 | ||
Tax Year 2044 | |||
Tax Credit Carryforward [Line Items] | |||
Operating Loss Carryforwards | 0 | ||
Research and development tax credit | [1] | 12 | |
Minimum Taxes | 0 | ||
Tax Year, Indefinite | |||
Tax Credit Carryforward [Line Items] | |||
Operating Loss Carryforwards | 422 | ||
Research and development tax credit | [1] | 22 | |
Minimum Taxes | $ 0 | ||
[1] Includes federal, provincial and state balances. |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | Feb. 29, 2024 | Feb. 28, 2023 |
Income Tax Disclosure [Abstract] | ||
Unrecognized income tax benefit will decrease in the next twelve months | $ 0 | |
Unrecognized tax benefits netted against deferred income taxes | 20 | |
Unrecognized tax benefits included within taxes payable | 0 | |
Accrued interest | 3 | $ 3 |
Unrecognized Tax Benefits, Income Tax Penalties Accrued | $ 0 | $ 0 |
Debentures (Details)
Debentures (Details) $ / shares in Units, shares in Thousands | 12 Months Ended | |||||
Feb. 29, 2024 USD ($) $ / shares shares | Feb. 28, 2023 USD ($) | Feb. 28, 2022 USD ($) | Jan. 29, 2024 USD ($) | Nov. 17, 2023 USD ($) | Nov. 13, 2023 USD ($) | |
Debt Instrument [Line Items] | ||||||
Long-term notes (note 6) | $ 194,000,000 | $ 0 | ||||
Conversion of stock (in shares) | shares | 51,500 | |||||
Interest expense, debt | $ 6,000,000 | 6,000,000 | $ 6,000,000 | |||
Short-term debentures | 0 | 367,000,000 | ||||
Repayments of Debt | 515,000,000 | 0 | 0 | |||
Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt | 200,000,000 | $ 200,000,000 | ||||
Payments of Debt Issuance Costs | (6,000,000) | |||||
Long-term notes (note 6) | $ 194,000,000 | |||||
Interest rate | 3% | |||||
Redemption period, end date | Feb. 15, 2029 | |||||
Par value of convertible debentures | $ 1,000 | |||||
Debt Instrument, Convertible, Number of Equity Instruments - with decimals | 257.5826 | |||||
Conversion of stock (in shares) | shares | 52,000 | |||||
Conversion price (in dollars per share) | $ / shares | $ 3.88 | |||||
Percent of debt holders (not less than) | 25% | |||||
Periodic payment, interest | $ 3,000,000 | |||||
Debt Instrument, Frequency of Periodic Payment | semi-annual | |||||
Date the Company can not redeem prior to, except for certain tax law changes | Feb. 22, 2027 | |||||
Initial increase to the interest rate of senior note due to default | 0.25% | |||||
Subsequent increase to the interest rate of senior note due to default | 0.50% | |||||
Date of first interest payment | Aug. 15, 2024 | |||||
Long-Term Debt, Contingent Payment of Principal or Interest | Under specified events of default, the outstanding principal and any accrued and unpaid interest on the Notes will become immediately due and payable upon request of holders holding not less than 25% of the principal amount of the Notes then outstanding. | |||||
Debt Instrument, Redemption, Description | The Company may not redeem the Notes prior to February 22, 2027, except in the event of certain tax law changes. On or after February 22, 2027, the Company may redeem for cash all or a portion of the Notes, at the Company’s election, if the last reported sale price of the Company’s common shares has been at least 130% of the conversion price then in effect on each of at least 20 trading days (whether or not consecutive) during any 30 consecutive trading-day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption at a cash redemption price equal to 100% of the aggregate principal amount of the Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. If the Company undergoes a fundamental change, as defined in the indenture governing the Notes, subject to certain conditions the Company will be required to make an offer to repurchase for cash all of the outstanding Notes (or any portion thereof that a holder determines to sell to the Company) at a repurchase price equal to 100% of the principal amount of the Notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the fundamental change repurchase date. In connection with certain corporate events or if the Company calls the Notes for redemption, the Company will, under certain circumstances, increase the conversion rate for noteholders who elect to convert their Notes in connection with such corporate event or convert their Notes called for redemption. | |||||
Debt Instrument, Interest Rate Terms | The Notes will bear interest at a rate of 3.00% per annum, payable semi-annually in arrears on February 15 and August 15 of each year, beginning on August 15, 2024. | |||||
Extension Debentures | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt | $ 365,000,000 | |||||
Interest rate | 1.75% | |||||
Redemption period, end date | Feb. 15, 2024 | |||||
Debt Instrument, Convertible, Number of Equity Instruments - with decimals | 166.67 | |||||
Conversion of stock (in shares) | shares | 25,000 | |||||
Conversion price (in dollars per share) | $ / shares | $ 6 | |||||
Interest rate in event of default | 5.75% | |||||
Percentage change of control | 115% | |||||
Ownership percentage by arms length party, common shares | 35% | |||||
Ownership percentage, common shares | 50% | |||||
Short-term debentures | $ 0 | $ 150,000,000 | ||||
Maximum ownership allowed after converting Extension Debenture | 19.99% | |||||
Repayments of Debt | $ 150,000,000 | |||||
Related Party Principal Amounts of Extension Debenture Owned | $ 150,000,000 | |||||
2020 Debentures | ||||||
Debt Instrument [Line Items] | ||||||
Redemption period, end date | Nov. 13, 2023 | |||||
Long-term notes (note 6) | 507,000,000 | |||||
Short-term debentures | $ 0 | 367,000,000 | ||||
Realized losses associated with the change in fair value from credit components released from AOCL on maturity of the Extension Debentures and 2020 Debentures | (6,000,000) | 0 | 0 | |||
Realized losses associated with the change in fair value from credit components recorded in the consolidated statements of operations on maturity of the Extension Debentures and 2020 Debentures | (6,000,000) | $ 0 | $ 0 | |||
Repayments of Debt | 365,000,000 | |||||
Related Party Principal Amounts of 2020 Debenture Owned | $ 330,000,000 |
Debentures - Change in Fair Val
Debentures - Change in Fair Value (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 28, 2022 | Nov. 17, 2023 | |
Debt Instrument [Line Items] | ||||
Short-term debentures | $ 0 | $ 367 | ||
Repayments of Debt | (515) | 0 | $ 0 | |
Extension Debentures | ||||
Debt Instrument [Line Items] | ||||
Short-term debentures | 0 | $ 150 | ||
Total decrease (increase) in fair value of the debenture | 0 | |||
Repayments of Debt | (150) | |||
2020 Debentures | ||||
Debt Instrument [Line Items] | ||||
Long-term notes (note 6) | 507 | |||
Short-term debentures | 0 | 367 | ||
Total decrease (increase) in fair value of the debenture | (2) | $ (140) | $ (213) | |
Repayments of Debt | $ (365) |
Debentures - Impact of Changes
Debentures - Impact of Changes in Fair Value of Debentures (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 28, 2022 | |
Debt Instrument [Line Items] | |||
Income associated with the change in fair value from non-credit components recorded in the consolidated statements of operations | $ (3) | $ 138 | $ 212 |
Income associated with the change in fair value from instrument-specific credit components recorded in AOCL | 0 | ||
2020 Debentures | |||
Debt Instrument [Line Items] | |||
Income associated with the change in fair value from non-credit components recorded in the consolidated statements of operations | 2 | 138 | 212 |
Income associated with the change in fair value from instrument-specific credit components recorded in AOCL | 2 | 1 | |
Realized losses associated with the change in fair value from credit components recorded in the consolidated statements of operations on maturity of the Extension Debentures and 2020 Debentures | (6) | 0 | 0 |
Realized losses associated with the change in fair value from credit components released from AOCL on maturity of the Extension Debentures and 2020 Debentures | (6) | 0 | 0 |
Debenture total fair value adjustment | $ 2 | $ 140 | $ 213 |
Capital Stock - Changes in Issu
Capital Stock - Changes in Issued and Outstanding Common Shares (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 28, 2022 | |
Common Stock [Roll Forward] | |||
Capital stock outstanding, Shares, Beginning Balance | 582,157,203 | ||
Deferred Shared Unit | $ 1 | ||
Capital stock outstanding, Shares, Ending Balance | 589,232,539 | 582,157,203 | |
Common Stock, Amount [Roll Forward] | |||
Exercise of stock options | $ 3 | ||
Stock-based compensation | $ 33 | $ 34 | 36 |
Employee share purchase plan | $ 5 | $ 6 | $ 7 |
Capital Stock and Additional Paid-In Capital [Member] | |||
Common Stock [Roll Forward] | |||
Capital stock outstanding, Shares, Beginning Balance | 582,157,000 | 576,228,000 | 565,505,000 |
Exercised during the year, Number | 106,000 | 97,000 | 555,000 |
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 5,636,000 | 4,872,000 | 8,011,000 |
Common share issued related to exchange shares | 1,422,000 | ||
Common shares issued on the redemption of deferred share units | 297,000 | ||
Deferred Shared Unit | $ 1 | ||
Common shares issued for employee share purchase plan | 1,037,000 | 960,000 | 735,000 |
Capital stock outstanding, Shares, Ending Balance | 589,233,000 | 582,157,000 | 576,228,000 |
Common Stock, Amount [Roll Forward] | |||
Capital stock outstanding, Value, Beginning Balance | $ (2,909) | $ (2,869) | $ (2,823) |
Exercise of stock options | 0 | 0 | 3 |
Stock-based compensation | 33 | 34 | 36 |
Employee share purchase plan | 5 | 6 | 7 |
Capital stock outstanding, Value, Ending Balance | $ (2,948) | $ (2,909) | $ (2,869) |
Capital Stock - Restricted Shar
Capital Stock - Restricted Share Unit Activity (Details) - Restricted Share Units (RSUs) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 28, 2022 | |
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 | 8,097,408 | 11,882,500 | |
Allocated Share-based Compensation Expense | $ 33 | $ 34 | $ 35 |
Number (000’s) | |||
Beginning balance | 19,640,000 | ||
Grants during the period, Number | 8,097,000 | ||
Vested during the period, Number | (5,636,000) | ||
Cancelled during the period, Number | (5,800,000) | ||
Ending balance | 16,301,000 | 19,640,000 | |
Expected to Vest, Outstanding Number | 13,491,000 | ||
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 | $ 5.92 | ||
Granted during the period, Weighted Average Grant Date Fair Value | 3.51 | $ 4.29 | $ 9.72 |
Vested during the period, Weighted-Average Grant Date Fair Value | 6.76 | ||
Cancelled during the period, Weighted-Average Grant Date Fair Value | 6.31 | ||
Ending balance, Weighted-Average Grant Date Fair Value | 4.30 | $ 5.92 | |
Expected to Vest, Weighted Average Grant Date Fair Value | $ 4.29 | ||
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 8 months 4 days | ||
Aggregate Intrinsic Value | $ 45 | ||
Vested and Expected to Vest, Average Remaining Contractual Life in Years | 1 year 7 months 28 days | ||
Vested and Expected to Vest, Intrinsic Value | $ 38 | ||
Unrecognized compensation expense | $ 53 | ||
Weighted-average vesting period related to unrecognized share-based compensation on unvested awards | 1 year 7 months 17 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 38 | $ 40 | $ 69 |
Capital Stock - Additional Info
Capital Stock - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Feb. 29, 2024 | Apr. 01, 2024 | Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Conversion of stock (in shares) | 51,500,000 | ||||
Common Stock, Shares, Outstanding | 589,232,539 | 582,157,203 | |||
Value of deferred share units redeemed for shares | $ 1 | ||||
Senior Notes | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Conversion of stock (in shares) | 52,000,000 | ||||
Capital Stock and Additional Paid-In Capital [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common Stock, Shares, Outstanding | 589,233,000 | 582,157,000 | 576,228,000 | 565,505,000 | |
Voting Common Stock [Member] | Subsequent Event [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common Stock, Shares, Outstanding | 589,000,000 | ||||
Employee Stock Option [Member] | Subsequent Event [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common Stock, Shares, Outstanding | 200,000 | ||||
Restricted Share Units (RSUs) | Subsequent Event [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common Stock, Shares, Outstanding | 19,000,000 | ||||
Deferred Share Unit | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Deferred share units issued | 381,073 | ||||
Deferred share units redeemed | 602,753 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 1,400,000 | 1,600,000 | |||
Liability related to deferred share unit plan | $ 4 | $ 6 | |||
Deferred Share Unit | Subsequent Event [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common Stock, Shares, Outstanding | 1,000,000 |
Earnings (Loss) Per Share - Sum
Earnings (Loss) Per Share - Summary of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||||||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 28, 2022 | |||||
Earnings Per Share [Abstract] | |||||||
Net income (loss) for basic and diluted earnings (loss) per share available to common shareholders from continuing operations | $ (130) | $ (734) | $ 12 | ||||
Debentures fair value impact on EPS | 0 | [1] | 138 | [2] | 212 | [2] | |
Interest expense, Debt on diluted EPS | 0 | [1] | 6 | [2] | 6 | [2] | |
Net Income (Loss) Available to Common Stockholders, Diluted | $ (130) | $ (866) | $ (194) | ||||
Weighted-average number of shares outstanding (000's) - basic and diluted | 584,543 | 578,654 | 570,607 | ||||
Dilutive Securities, Effect on Basic Earnings Per Share, Dilutive Convertible Securities | 0 | [1] | 60,833 | [2] | 60,833 | [2] | |
Weighted Average Number of Shares Outstanding, Diluted | [3] | 584,543 | 639,487 | 631,440 | |||
Earnings Per Share, Basic | $ (0.22) | $ (1.27) | $ 0.02 | ||||
Earnings Per Share, Diluted | $ (0.22) | $ (1.35) | $ (0.31) | ||||
[1]The Company has not presented the dilutive effect of the Notes, Extension Debentures or 2020 Debentures using the if-converted method in the calculation of diluted loss per share for the year ended February 29, 2024, as to do so would be antidilutive. See Note 6 for details on the Debentures.[2] The Company has presented the dilutive effect of the 2020 Debentures using the if-converted method, assuming conversion at the beginning of the fiscal year for the years ended February 28, 2023 and February 28, 2022. Accordingly, to calculate diluted loss per share, the Company adjusted net income (loss) by eliminating the fair value adjustment made to the 2020 Debentures and interest expense incurred on the 2020 Debentures in the years ended February 28, 2023 and February 28, 2022, and added the number of shares that would have been issued upon conversion to the diluted weighted average number of shares outstanding. See Note 6 for details on the 2020 Debentures. 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 loss per share for the years ended February 29, 2024, February 28, 2023 and February 28, 2022 as to do so would be antidilutive. |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 28, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | $ 857 | $ 1,556 | $ 1,504 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 2 | (6) | (6) |
Other Comprehensive Income (Loss), Financial Liability, Fair Value Option, Unrealized Gain (Loss) Arising During Period, after Tax | 6 | 2 | 1 |
Other Comprehensive Income (Loss), Net of Tax | 10 | (5) | (6) |
Ending Balance | 776 | 857 | 1,556 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax and Reclassification Adjustment, Attributable to Parent | (1) | 0 | 0 |
Cash Flow Hedges | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (1) | 0 | 1 |
Other comprehensive loss before reclassification | 0 | (3) | 0 |
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent | 1 | 2 | (1) |
Ending Balance | 0 | (1) | 0 |
Foreign Currency Cumulative Translation Adjustment | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (16) | (10) | (4) |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 2 | (6) | (6) |
Ending Balance | (14) | (16) | (10) |
Change in Fair Value From Instrument-Specific Credit Risk On Debentures | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (6) | (8) | (9) |
Other Comprehensive Income (Loss), Financial Liability, Fair Value Option, Unrealized Gain (Loss) Arising During Period, after Tax | 0 | 2 | 1 |
Reclassification from AOCI, Current Period, Net of Tax, Attributable to Parent | 6 | 0 | 0 |
Ending Balance | 0 | (6) | (8) |
Other Post-Employment Benefit Obligations | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (1) | (1) | (1) |
Ending Balance | 0 | (1) | (1) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax and Reclassification Adjustment, Attributable to Parent | 1 | 0 | 0 |
Accumulated Other Comprehensive Loss, End of Period | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (24) | (19) | |
Ending Balance | $ (14) | $ (24) | $ (19) |
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, 2024 | Feb. 28, 2023 | |
Selling, marketing and administration [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Gains (losses) on Cash Flow Hedges | $ (1) | $ 2 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Feb. 29, 2024 | Feb. 28, 2023 |
Collateral of outstanding letters of credit | $ 25 | |
Funds from claim filed with Ministry of Innovation, Science and Economic Development Canada relating to Strategic Innovation Fund Program | $ 17 | $ 17 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Nov. 30, 2023 | Aug. 31, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | Feb. 28, 2022 | |
Results of Arbitrations and Legal Proceedings [Line Items] | |||||
Payments for Legal Settlements | $ 164 | $ 1 | |||
Litigation Settlement, Expense | $ 0 | $ 165 | $ 0 |
Leases (Components of Operating
Leases (Components of Operating Lease Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 28, 2022 | |
Leases [Abstract] | |||
Operating Lease, Cost | $ 18 | $ 20 | $ 23 |
Leases (Supplemental Cash Flow
Leases (Supplemental Cash Flow Information) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 28, 2022 | |
Leases [Abstract] | |||
Operating Lease, Payments | $ 28 | $ 32 | $ 37 |
Leases (Supplemental Balance Sh
Leases (Supplemental Balance Sheet Information) (Details) - USD ($) $ in Millions | Feb. 29, 2024 | Feb. 28, 2023 |
Leases [Abstract] | ||
Operating lease right-of-use assets, net | $ 32 | $ 44 |
Operating lease liabilities | 38 | 52 |
Operating Lease, Liability, Total | 58 | 76 |
Lessee, Lease, Description [Line Items] | ||
Operating Lease, Liability | 58 | 76 |
Operating Lease, Liability, Current | $ 20 | $ 24 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] |
Leases (Weighted Average Remain
Leases (Weighted Average Remaining Lease term and Discount Rate) (Details) | Feb. 29, 2024 | Feb. 28, 2023 |
Leases [Abstract] | ||
Operating Lease, Weighted Average Remaining Lease Term | 3 years 2 months 12 days | 3 years 9 months 18 days |
Operating Lease, Weighted Average Discount Rate, Percent | 3.90% | 3.40% |
Leases (Maturities of Undiscoun
Leases (Maturities of Undiscounted Lease Liabilities) (Details) - USD ($) $ in Millions | Feb. 29, 2024 | Feb. 28, 2023 |
Leases [Abstract] | ||
Lessee, Operating Lease, Liability, Payments, Due Next Twelve Months | $ 23 | |
Lessee, Operating Lease, Liability, Payments, Due Year Two | 18 | |
Lessee, Operating Lease, Liability, Payments, Due Year Three | 12 | |
Lessee, Operating Lease, Liability, Payments, Due Year Four | 10 | |
Lessee, Operating Lease, Liability, Payments, Due Year Five | 1 | |
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 1 | |
Lessee, Operating Lease, Liability, Payments, Due, Total | 65 | |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | 7 | |
Operating Lease, Liability | $ 58 | $ 76 |
Leases (Additional Information)
Leases (Additional Information) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 28, 2022 | |
Leases [Abstract] | |||
Lessee, Operating Lease, Renewal Term | 10 years | ||
Lessor, Operating Lease, Option to Terminate | one month | ||
Lessee, Lease, Description [Line Items] | |||
Impairment Of Right of Use Assets | $ 7 | $ 4 | $ 0 |
Lease Obligation Incurred | 13 | 15 | |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 13 | 15 | |
Sublease Income | 4 | 3 | 3 |
Short-term Lease, Cost | $ 3 | $ 2 | $ 2 |
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Remaining Lease Term | 6 years | ||
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Remaining Lease Term | 1 year |
Revenue and Segment Disclosur_2
Revenue and Segment Disclosures - Operating results by operating segments (Details) $ in Millions | 12 Months Ended | ||
Feb. 29, 2024 USD ($) operatingSegment | Feb. 28, 2023 USD ($) | Feb. 28, 2022 USD ($) | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 853 | $ 656 | $ 718 |
Cost of Revenue | 333 | 237 | 251 |
Gross Profit | $ 520 | 419 | 467 |
Number of Operating Segments | operatingSegment | 3 | ||
Cybersecurity | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 378 | 418 | 477 |
Cost of Revenue | 142 | 185 | 194 |
Gross Profit | 236 | 233 | 283 |
IoT | |||
Segment Reporting Information [Line Items] | |||
Revenues | 215 | 206 | 178 |
Cost of Revenue | 36 | 37 | 30 |
Gross Profit | 179 | 169 | 148 |
Licensing and Other | |||
Segment Reporting Information [Line Items] | |||
Revenues | 260 | 32 | 63 |
Cost of Revenue | 152 | 12 | 23 |
Segment gross margin | 108 | 20 | 40 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 853 | 656 | 718 |
Cost of Revenue | 330 | 234 | 247 |
Gross Profit | $ 523 | $ 422 | $ 471 |
Revenue and Segment Disclosur_3
Revenue and Segment Disclosures - Reconciliation of Operating Profit (Loss) from Segments to Consolidated (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 28, 2022 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Gross Profit | $ 520 | $ 419 | $ 467 |
Cost of Revenue | 333 | 237 | 251 |
Research and development | 186 | 207 | 219 |
Sales and marketing | 171 | 176 | 183 |
General and administrative | 181 | 164 | 114 |
Amortization | 54 | 96 | 165 |
Impairment of long-lived assets (note 3) | 15 | 235 | 0 |
Impairment of goodwill | 35 | 245 | 0 |
Debentures fair value adjustment | 3 | (138) | (212) |
Litigation Settlement, Expense | 0 | 165 | 0 |
Investment income, net | (19) | (5) | (21) |
Income (loss) before income taxes | (106) | (720) | 19 |
Gain on sale of property, plant and equipment, net (note 4) | 0 | (6) | 0 |
Operating Segments | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Gross Profit | 523 | 422 | 471 |
Cost of Revenue | 330 | 234 | 247 |
Segment Reconciling Items | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Cost of Revenue | 3 | 3 | 4 |
Investment income, net | $ (19) | $ (5) | $ (21) |
Revenue and Segment Disclosur_4
Revenue and Segment Disclosures - Revenue from External Customers by Geographic Areas (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 28, 2022 | ||
Segment Reporting Information [Line Items] | ||||
Total Revenue | $ 853 | $ 656 | $ 718 | |
Total Revenue Rate | 100% | 100% | 100% | |
Long-Lived Assets | $ 769 | $ 867 | ||
North America | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenue | [1] | $ 556 | $ 350 | $ 413 |
Total Revenue Rate | 65.20% | 53.40% | 57.50% | |
Europe, Middle East and Africa | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenue | $ 172 | $ 222 | $ 234 | |
Total Revenue Rate | 20.20% | 33.80% | 32.60% | |
Other Regions | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenue | $ 125 | $ 84 | $ 71 | |
Total Revenue Rate | 14.60% | 12.80% | 9.90% | |
Other Countries | ||||
Segment Reporting Information [Line Items] | ||||
Long-Lived Assets | $ 29 | $ 27 | ||
Canada | ||||
Segment Reporting Information [Line Items] | ||||
Long-Lived Assets | 78 | 98 | ||
United States | ||||
Segment Reporting Information [Line Items] | ||||
Long-Lived Assets | $ 662 | $ 742 | ||
[1]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 and Segment Disclosur_5
Revenue and Segment Disclosures Revenue classified by timing of recognition (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 28, 2022 | |
Revenue classified by timing of recognition [Line Items] | |||
Revenues | $ 853 | $ 656 | $ 718 |
Transferred over Time [Member] | |||
Revenue classified by timing of recognition [Line Items] | |||
Revenues | 279 | 364 | 428 |
Transferred at Point in Time [Member] | |||
Revenue classified by timing of recognition [Line Items] | |||
Revenues | $ 574 | $ 292 | $ 290 |
Revenue and Segment Disclosur_6
Revenue and Segment Disclosures Revenue Contract Balances (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 28, 2022 | |
Revenue Contract Balances [Line Items] | |||
Deferred revenue | $ 7 | $ (29) | $ (50) |
Accounts Receivable [Member] | |||
Revenue Contract Balances [Line Items] | |||
Contract with Customer, Asset, Net | 255 | 120 | |
Increase in contract receivable | 939 | ||
Decrease in contract asset | (804) | ||
Increase Decrease In Contract with Customer, Asset, Net - Current and Non-Current | 135 | ||
Deferred Revenue | |||
Revenue Contract Balances [Line Items] | |||
Deferred Revenue | 222 | 215 | |
Deferred Revenue, Additions | 605 | ||
Decrease in deferred revenue due to payment, fulfillment of performance obligations, or other | (598) | ||
Deferred revenue | 7 | ||
Deferred commission | |||
Revenue Contract Balances [Line Items] | |||
Capitalized Contract Cost, Net | 21 | $ 17 | |
Increase in deferred commission | 32 | ||
Decrease in deferred commission | (28) | ||
Net change in deferred commission | $ 4 |
Revenue and Segment Disclosur_7
Revenue and Segment Disclosures -Transaction price allocated to the remaining performance obligations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 28, 2022 | |
Transaction price allocated to the remaining performance obligations [Line Items] | |||
Contract with Customer, Performance Obligation Satisfied in Previous Period | $ 12 | $ 1 | $ 1 |
Revenue, Remaining Performance Obligation, Amount | 222 | ||
Less than 12 months | |||
Transaction price allocated to the remaining performance obligations [Line Items] | |||
Revenue, Remaining Performance Obligation, Amount | 194 | ||
12 to 24 months | |||
Transaction price allocated to the remaining performance obligations [Line Items] | |||
Revenue, Remaining Performance Obligation, Amount | 14 | ||
After 24 months | |||
Transaction price allocated to the remaining performance obligations [Line Items] | |||
Revenue, Remaining Performance Obligation, Amount | $ 14 |
Revenue and Segment Disclosur_8
Revenue and Segment Disclosures - Long-lived Assets and Total Assets by Geographic Areas (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 28, 2022 | |
Long-lived Assets and Total Assets by Geographic Areas [Line Items] | |||
Long-Lived Assets | $ 769 | $ 867 | |
Assets | $ 1,395 | $ 1,679 | |
Number of customers that comprised more than 10% of total revenue | one | one | one |
One Customer | Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | |||
Long-lived Assets and Total Assets by Geographic Areas [Line Items] | |||
Concentration risk, percentage | 27% | 12% | 11% |
Canada | |||
Long-lived Assets and Total Assets by Geographic Areas [Line Items] | |||
Long-Lived Assets | $ 78 | $ 98 | |
Assets | 342 | 375 | |
United States | |||
Long-lived Assets and Total Assets by Geographic Areas [Line Items] | |||
Long-Lived Assets | 662 | 742 | |
Assets | 923 | 1,208 | |
Other Countries | |||
Long-lived Assets and Total Assets by Geographic Areas [Line Items] | |||
Long-Lived Assets | 29 | 27 | |
Assets | $ 130 | $ 96 |
Revenue and Segment Disclosur_9
Revenue and Segment Disclosures - Additional Details (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 28, 2022 | May 11, 2023 | |
Segment Reporting [Abstract] | ||||
Patent sale cash consideration on closing | $ 170 | |||
Patent sale cash consideration no later than third anniversary date of closing | 30 | |||
Patent sale consideration in the form of potential future royalty | $ 700 | |||
Revenue recognized on patent sale | $ 218 | |||
Intellectual property disposed of by sale | 147 | $ 0 | $ 0 | |
Patent sale financing component | 10 | |||
Patent sale variable consideration recognized on sale | 23 | |||
Patent sale variable consideration constrained | $ 210 |
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, 2024 | Feb. 28, 2023 | Feb. 28, 2022 | |
Supplemental Cash Flow Information [Abstract] | |||
Interest paid during the year | $ 6 | $ 6 | $ 6 |
Income taxes paid during the year | 10 | 2 | 5 |
Proceeds from Income Tax Refunds | $ 1 | $ 5 | $ 6 |
Cash Flow and Additional Info_4
Cash Flow and Additional Information - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 28, 2022 | |
Supplemental Cash Flow Information [Abstract] | |||
Advertising expense | $ 22 | $ 29 | $ 25 |
Foreign exchange gains (losses) | $ 0 | $ 0 | $ 1 |
Percentage of cash and cash equivalents denominated in foreign currencies | 19% | 19% | |
Percentage of accounts receivable denominated in foreign currencies | 25% | 24% | |
Percentage of accounts payable denominated in foreign currencies | 59% | 36% | |
Percentage of cash, cash equivalents and investments threshold used to determine major issuer | 30% | 12% | |
Derivative asset, fair value of collateral | $ 0 | $ 1 | |
Cash, Cash Equivalents And Investments | $ 298 | $ 487 |