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Revenue and Segment Disclosures
 12 Months Ended
Feb. 28, 2022
Segment Reporting [Abstract]  
Revenue and Segment Disclosures REVENUE AND SEGMENT DISCLOSURESThe 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 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 28, 2022:
CybersecurityIoTLicensing and OtherSegment Totals
Segment revenue$477 $178 $63 $718 
Segment cost of sales194 30 23 247 
Segment gross margin (1)
$283 $148 $40 $471 
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(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, 2021 and February 29, 2020:
 For the Year Ended
February 28, 2021February 29, 2020
CybersecurityIoTLicensing and OtherSegment TotalsCybersecurityIoTLicensing and OtherSegment Totals
Segment revenue$491 $130 $272 $893 $475 $216 $349 $1,040 
Segment cost of sales192 23 30 245 185 29 53 267 
Segment gross margin (1)
$299 $107 $242 $648 $290 $187 $296 $773 
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(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 BlackBerry SecuSUITE. The BlackBerry Spark platform is a comprehensive offering of security software products and services, including the BlackBerry Cyber Suite and the BlackBerry Spark Unified Endpoint Management Suite, which are also marketed together as the BlackBerry Spark Suite, offering the Company’s broadest range of tailored cybersecurity and endpoint management options. The BlackBerry Cyber 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. 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 fiscal year ended February 28, 2022, February 28, 2021 and February 29, 2020 to the Company’s consolidated totals:
 For the Years Ended
February 28, 2022February 28, 2021February 29, 2020
Total segment gross margin471 $648 $773 
Adjustments (1):
Less: Stock compensation4 5 5 
Less: Restructuring charges— — 5 
Less:
Research & development219 215 259 
Selling, marketing and administration 297 344 493 
Amortization165 182 194 
Impairment of long-lived assets— 43 10
Impairment of goodwill— 594 22 
Debentures fair value adjustment(212)372 (66)
Investment income (loss), net(21)6 (1)
Consolidated income (loss) before income taxes$19 $(1,113)$(148)
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(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.
Restructuring charges - The Company believes that restructuring costs relating to employee termination benefits and facilities pursuant to the Resource Allocation Program (“RAP”) entered into in order to transition the Company from a legacy hardware manufacturer to a licensing driven software business do not reflect expected future operating expenses, are not indicative of the Company’s core operating performance, and may not be meaningful in comparison to the Company’s past operating performance.
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 28, 2022February 28, 2021February 29, 2020
North America (1)
$413 57.5 %$633 70.9 %$743 71.4 %
Europe, Middle East and Africa234 32.6 %197 22.1 %221 21.3 %
Other regions71 9.9 %63 7.0 %76 7.3 %
Total $718 100.0 %$893 100.0 %$1,040 100.0 %
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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:
 For the Year Ended
February 28, 2022February 28, 2021February 29, 2020
Products and services transferred over time$428 $476 $512 
Products and services transferred at a point in time290 417 528 
Total$718 $893 $1,040 
Revenue contract balances
The following table sets forth the activity in the Company’s revenue contract balances for the fiscal year ended February 28, 2022:
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 other702 597 19 
Decrease due to payment, fulfillment of performance obligations, or other(752)(647)(24)
Decrease, net(50)(50)(5)
Closing balance as at February 28, 2022$138 $244 $16 
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 28, 2022 and the time frame in which the Company expects to recognize this revenue. The disclosure includes estimates of variable consideration, except when the variable consideration is a sales-based or usage-based royalty promised in exchange for a license of intellectual property.
As at February 28, 2022
Less than 12 Months12 to 24 MonthsThereafterTotal
Remaining performance obligations$211 $31 $12 $254 
Revenue recognized for performance obligations satisfied in prior periods
For the fiscal year ended February 28, 2022, $1 million in revenue was recognized relating to performance obligations satisfied in a prior period (fiscal year ended February 28, 2021 - $2 million; fiscal year ended February 29, 2020 - $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 28, 2022February 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$117 $467 $289 $504 
United States1,313 1,789 1,411 1,963 
Other27 311 31 351 
$1,457 $2,567 $1,731 $2,818 
Information About Major Customers
There was one customer that comprised 11% of the Company’s revenue in fiscal 2022 (fiscal 2021 - one customer that comprised 22%; fiscal 2020 - one customer that comprised 13%).