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Revenue and Segment Disclosures
 9 Months Ended
Nov. 30, 2021
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. In the first quarter of fiscal 2022, the CODM, who is the Executive Chair and CEO of the Company, began making decisions and assessing the performance of the Company using three operating segments, whereas the CODM previously made decisions and assessed the performance of the Company as a single operating segment.
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 now organized and managed as three operating segments: Cybersecurity, IoT, and Licensing and Other. Prior year information has been restated to conform to the current year presentation of the Company’s segment information.
The following table shows information by operating segment for the three and nine months ended November 30, 2021 and November 30, 2020:
 For the Three Months Ended
CybersecurityIoTLicensing and OtherSegment Totals
November 30,November 30,November 30,November 30,
20212020202120202021202020212020
Segment revenue$128 $130 $43 $32 $13 $56 $184 $218 
Segment cost of sales52 53 8 6 6 9 66 68 
Segment gross margin (1)
$76 $77 $35 $26 $7 $47 $118 $150 
For the Nine Months Ended
CybersecurityIoTLicensing and OtherSegment Totals
November 30,November 30,November 30,November 30,
20212020202120202021202020212020
Segment revenue$355 $369 $126 $92 $52 $222 $533 $683 
Segment cost of sales147 146 22 18 18 24 187 188 
Segment gross margin (1)
$208 $223 $104 $74 $34 $198 $346 $495 
______________________________
(1) A reconciliation of total segment gross margin to consolidated totals is set forth below.
Cybersecurity consists of the Company’s BlackBerry Spark® software platform, BlackBerry® AtHoc, BlackBerry® Alert and SecuSUITE. The BlackBerry Spark platform is a comprehensive offering of security software products and services, including the BlackBerry Spark® Unified Endpoint Security Suite and the BlackBerry Spark® Unified Endpoint Management (“UEM”) Suite, which are also marketed together as the BlackBerry Spark® Suites, offering the Company’s broadest range of tailored cybersecurity and endpoint management options. The BlackBerry Spark UES Suite includes revenue from the Company’s Cylance® artificial intelligence and machine learning-based platform consisting of BlackBerry® Protect, BlackBerry® Optics, BlackBerry® Persona, BlackBerry® Gateway, BlackBerry® Guard managed services and other cybersecurity applications. In addition, the Company offers the BlackBerry Cyber Suite, a UEM-agnostic version of its BlackBerry Spark UES Suite. The BlackBerry Spark UEM Suite includes the Company’s 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 service access fees (“SAF”) business.
The following table reconciles total segment gross margin for the three and nine months ended November 30, 2021 and November 30, 2020 to the Company’s consolidated totals:
 Three Months EndedNine Months Ended
November 30, 2021November 30, 2020November 30, 2021November 30, 2020
Total segment gross margin$118 $150 346 $495 
Adjustments (1):
Less: Cost of sales1 1 3 4 
Less:
Research & development57 53 172 167 
Selling, marketing and administration 77 83 233 252 
Amortization42 45 133 137 
Impairment of long-lived assets— — — 21 
Impairment of goodwill— — — 594 
Debentures fair value adjustment(110)95 (47)114 
Investment income (loss), net(25)1 (22)6 
Consolidated income (loss) before income taxes$76 $(128)$(126)$(800)
______________________________
(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
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:
 Three Months EndedNine Months Ended
 November 30, 2021November 30, 2020November 30, 2021November 30, 2020
North America (1)
$101 $147 $313 $492 
Europe, Middle East and Africa66 55 168 144 
Other regions17 16 52 47 
Total $184 $218 $533 $683 
North America (1)
54.9 %67.5 %58.7 %72.0 %
Europe, Middle East and Africa35.9 %25.2 %31.5 %21.1 %
Other regions9.2 %7.3 %9.8 %6.9 %
Total 100.0 %100.0 %100.0 %100.0 %
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(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:
 Three Months Ended Nine Months Ended
November 30, 2021November 30, 2020November 30, 2021November 30, 2020
Products and services transferred over time$111 $121 $324 $362 
Products and services transferred at a point in time73 97 209 321 
Total$184 $218 $533 $683 
Revenue contract balances
The following table sets forth the activity in the Company’s revenue contract balances for the nine months ended November 30, 2021:
Accounts ReceivableDeferred RevenueDeferred Commissions
Opening balance as at February 28, 2021$188 $294 $21 
Increases due to invoicing of new or existing contracts, associated contract acquisition costs, or other499 418 14 
Decrease due to payment, fulfillment of performance obligations, or other(549)(477)(18)
Decrease, net(50)(59)(4)
Closing balance as at November 30, 2021$138 $235 $17 
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 November 30, 2021 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 November 30, 2021
Less than 12 Months12 to 24 MonthsThereafterTotal
Remaining performance obligations$206 $32 $13 $251 
Revenue recognized for performance obligations satisfied in prior periods
For the three and nine months ended November 30, 2021, $1 million of revenue was recognized for performance obligations satisfied in a prior period (three and nine months ended November 30, 2020 - $2 million of revenue was recognized relating to performance obligations satisfied in a prior period).
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
 November 30, 2021February 28, 2021
Property, Plant and Equipment, Intangible Assets, Operating Lease ROU Assets and GoodwillTotal AssetsProperty, Plant and Equipment, Intangible Assets, Operating Lease ROU Assets and GoodwillTotal Assets
Canada$238 $443 $289 $504 
United States1,337 1,815 1,411 1,963 
Other28 341 31 351 
$1,603 $2,599 $1,731 $2,818 
Information About Major Customers
There was one customer that comprised 14% and 11% of the Company’s revenue in the three and nine months ended November 30, 2021, respectively (three and nine months ended November 30, 2020 - one customer that comprised 13% and 27% of the Company’s revenue, respectively).