Consolidated Balance Sheets Details

12 Months Ended

Feb. 28, 2021

Balance Sheet Related Disclosures [Abstract]

Consolidated Balance Sheet Details

CONSOLIDATED BALANCE SHEET DETAILS

    Accounts Receivable, Net

The allowance for credit losses as at February 28, 2021 was $10 million (February 29, 2020 - $9 million).

The Company recognizes current estimated credit losses for accounts receivable, net of allowance. The CECL for accounts receivable, net 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, inclusive of the effect of the COVID-19 pandemic on credit losses. The duration and severity of the COVID-19 pandemic and the resulting market volatility are highly uncertain and, as such, the impact on expected credit losses is subject to significant judgment and may cause variability in the Company’s allowance for credit losses in future periods. 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:

	For the Year Ended
	February 28, 2021
Beginning balance as of February 29, 2020	$	9
Impact of adopting ASC 326	4
Current period recovery for expected credit losses	(3)
Ending balance of the allowance for credit loss as at February 28, 2021	$	10

The allowance for credit losses as at February 28, 2021 consists of $3 million relating to CECL estimated based on days past due and geographic region and $7 million relating to specific customers that were evaluated separately.

There was one customer that comprised more than 10% of accounts receivable as at February 28, 2021 (February 29, 2020 - two customers comprised more than 10%).

Other Current Assets

As at February 28, 2021 and February 29, 2020, other current assets include items such as the current portion of deferred commissions and prepaid expenses, among other items, none of which were greater than 5% of the current assets balance in all years presented.

Property, Plant and Equipment, Net

Property, plant and equipment comprised the following:

	As at
	February 28, 2021		February 29, 2020
Cost
Buildings, leasehold improvements and other	$	67	$	72
BlackBerry operations and other information technology	110		84
Manufacturing, repair and research and development equipment	72		73
Furniture and fixtures	10		11
	259		240
Accumulated amortization	211		170
Net book value	$	48	$	70

For the year ended February 28, 2021, amortization expense related to property, plant and equipment amounted to $21 million (February 29, 2020 - $24 million; February 28, 2019 - $20 million).

Intangible Assets, Net

Intangible assets comprised the following:

	As at February 28, 2021
	Cost		Accumulated Amortization		Net Book Value
Acquired technology	$	1,023	$	712	$	311
Intellectual property	498		299		199
Other acquired intangibles	494		233		261
	$	2,015	$	1,244	$	771

	As at February 29, 2020
	Cost		Accumulated Amortization		Net Book Value
Acquired technology	$	1,019	$	636	$	383
Intellectual property	489		275		214
Other acquired intangibles	494		176		318
	$	2,002	$	1,087	$	915

For the year ended February 28, 2021, amortization expense related to intangible assets amounted to $177 million (February 29, 2020 - $188 million; February 28, 2019 - $129 million).

Total additions to intangible assets in fiscal 2021 amounted to $36 million (fiscal 2020 - $32 million). During fiscal 2021, additions to intangible assets primarily consisted of payments for intellectual property relating to patent maintenance, registration and license fees.

Based on the carrying value of the identified intangible assets as at February 28, 2021, and assuming no subsequent impairment of the underlying assets, the annual amortization expense for each of the succeeding years is expected to be as follows: fiscal 2022 - $153 million; fiscal 2023 - $117 million; fiscal 2024 - $109 million; fiscal 2025 - $101 million; and fiscal 2026 - $95 million.

The weighted average remaining useful lives of the intangible assets are as follows:

	As at
	February 28, 2021	February 29, 2020
Acquired technology	4.7 years	5.4 years
Intellectual property	6.4 years	6.6 years
Other acquired intangibles	5.0 years	6.0 years

Goodwill

Changes to the carrying amount of goodwill during the fiscal years ended February 28, 2021, February 29, 2020 and February 28, 2019 were as follows:

	Carrying Amount
Carrying amount as at February 28, 2018	$	569
Effect of foreign exchange on non-U.S. dollar denominated goodwill	(5)
Goodwill acquired through business combination completed during the year	899
Carrying amount as at February 28, 2019	1,463
Measurement period adjustment (note 5)	(2)
Goodwill impairment charge	(22)
Effect of foreign exchange on non-U.S. dollar denominated goodwill	(2)
Carrying amount as at February 29, 2020	1,437
Effect of foreign exchange on non-U.S. dollar denominated goodwill	6
Goodwill impairment charge (note 3)	(594)
Carrying amount as at February 28, 2021	$	849

Other Long-term Assets

As at February 28, 2021 and February 29, 2020, other long-term assets include long-term portion of deferred commission and long-term receivables, among other items, none of which were greater than 5% of total assets in any of the periods presented.

Accrued Liabilities

Accrued liabilities comprised the following:

	As at
	February 28, 2021		February 29, 2020
Variable incentive accrual	$	16	$	33
Operating lease liabilities, current (note 12)	33		31
Other	129		138
	$	178	$	202

Other accrued liabilities include accrued vendor liabilities, accrued carrier liabilities and payroll withholding taxes, among other items, none of which were greater than 5% of the current liabilities balance.

Other Long-term LiabilitiesOther long-term liabilities consist of the long-term portion of finance lease liabilities and non-lease component liabilities related to the Company’s previous Resource Allocation Program entered into in order to transition the Company from a legacy hardware manufacturer to a licensing driven software business.