Revenue and Segment Disclosures

3 Months Ended

May 31, 2020

Segment Reporting [Abstract]

Revenue and Segment Disclosures

REVENUE AND SEGMENT DISCLOSURES

Revenue

The Company disaggregates revenue from contracts with customers based on geographical regions, timing of revenue recognition, and the major product and service types.

The Company’s revenue, classified by major geographic region in which the Company’s customers are located, was as follows:

	Three Months Ended
	May 31, 2020			May 31, 2019
North America (1)	$	150		$	160
Europe, Middle East and Africa	41			61
Other regions	15			26
Total	$	206		$	247
North America (1)	72.8		%	64.8		%
Europe, Middle East and Africa	19.9		%	24.7		%
Other regions	7.3		%	10.5		%
Total	100.0		%	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.

Total revenue, classified by product and service type, was as follows:

	Three Months Ended
	May 31, 2020		May 31, 2019
Software and Services	$	148	$	168
Licensing and Other	58		79
Total	$	206	$	247

Software and Services includes revenue from the Company’s BlackBerry Spark software platform and BlackBerry IoT Solutions. The BlackBerry Spark platform includes a suite of security software products and services, including BlackBerry Cylance, BlackBerry UEM, BlackBerry Dynamics and BlackBerry Workspaces. BlackBerry IoT Solutions includes revenue from BlackBerry QNX, BlackBerry AtHoc, SecuSUITE, BlackBerry Certicom, BlackBerry Radar, and other IoT applications. Software and Services revenue is generated predominantly through software licenses, commonly bundled with support, maintenance and professional services.

Licensing and Other includes revenue from the Company’s intellectual property licensing arrangements, BBM Consumer licensing arrangement, settlement awards and mobility licensing software arrangements, which includes revenue from licensed hardware sales. Other includes revenue associated with the Company’s legacy service access fees (“SAF”) business, as well as revenue relating to unspecified future software upgrade rights for devices previously sold by the Company.

Revenue, classified by timing of recognition, was as follows:

	Three Months Ended
	May 31, 2020		May 31, 2019
Products and services transferred over time	$	116	$	152
Products and services transferred at a point in time	90		95
Total	$	206	$	247

Revenue contract balances

The following table sets forth the activity in the Company’s revenue contract balances for the three months ended May 31, 2020:

	Accounts Receivable		Deferred Revenue		Deferred Commissions
Opening balance as at February 29, 2020	$	267	$	373	$	28
Increases due to invoicing of new or existing contracts, associated contract acquisition costs, or other	181		117		8
Decrease due to payment, fulfillment of performance obligations, or other	(193)		(149)		(9)
Decrease, net	(12)		(32)		(1)
Closing balance as at May 31, 2020	$	255	$	341	$	27

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 May 31, 2020 and the time frame in which the Company expects to recognize this revenue. The disclosure includes estimates of variable consideration, except when the variable consideration is a sales-based or usage-based royalty promised in exchange for a license of intellectual property.

	As at May 31, 2020
	Less than 12 Months		12 to 24 Months		Thereafter		Total
Remaining performance obligations	$	264	$	90	$	32	$	386

Revenue recognized for performance obligations satisfied in prior periods

For the three months ended May 31, 2020, no revenue was recognized relating to performance obligations satisfied in a prior period (three months ended May 31, 2019 - nil).

Segment Disclosures

The Company reports segment information based on the “management” approach. The management approach designates the internal reporting used by the Chief Operating Decision Maker (“CODM”) for making decisions and assessing performance as a source of the Company’s reportable operating segments. The CODM, who is the Executive Chair and CEO, reviews financial information, makes decisions and assesses the performance of the Company as a single operating segment.

Property, plant and equipment, intangible assets, operating lease ROU assets and goodwill, classified by geographic region in which the Company’s assets are located, were as follows:

	As at
	May 31, 2020				February 29, 2020
	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	$	356	$	706	$	374	$	657
United States	1,511		2,360		2,132		3,071
Other	38		149		40		160
	$	1,905	$	3,215	$	2,546	$	3,888

Information About Major Customers

There was one customer that comprised 26% of the Company’s revenue in three months ended May 31, 2020 (three months ended May 31, 2019 - one customer that comprised 16% of the Company’s revenue).