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Consolidated Balance Sheets Details
 3 Months Ended
May 31, 2024
Balance Sheet Related Disclosures [Abstract]  
Consolidated Balance Sheet Details
3.    CONSOLIDATED BALANCE SHEET DETAILS
Accounts Receivable, Net of Allowance
The current estimated credit losses (“CECL”) for accounts receivable as at May 31, 2024 was $5 million (February 29, 2024 - $6 million).
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, 2023$1 
Prior period provision for expected credit losses5 
Ending balance of the allowance for credit loss as at February 29, 20246 
Current period recovery for expected credit losses (1)
Ending balance of the allowance for credit loss as at May 31, 2024$5 
The allowance for credit losses as at May 31, 2024 consists of $1 million (February 29, 2024 - $1 million) relating to CECL estimated based on days past due and region and $4 million (February 29, 2024 - $5 million) relating to specific customers that were evaluated separately.
There was one customer that comprised more than 10% of accounts receivable as at May 31, 2024 (February 29, 2024 - two customers comprised more than 10%).
Other Receivables
As at May 31, 2024 and February 29, 2024, 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
As at May 31, 2024 and February 29, 2024, other current assets 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
 May 31, 2024February 29, 2024
Cost
BlackBerry operations and other information technology$86 $85 
Leasehold improvements and other14 15 
Furniture and fixtures6 6 
Manufacturing, repair and research and development equipment2 3 
108 109 
Accumulated amortization89 88 
Net book value$19 $21 
Intangible Assets, Net
Intangible assets comprised the following:
 As at May 31, 2024
 CostAccumulated
Amortization		Net Book
Value
Acquired technology$900 $851 $49 
Other acquired intangibles386 337 49 
Intellectual property110 63 47 
$1,396 $1,251 $145 
As at February 29, 2024
CostAccumulated
Amortization		Net Book
Value
Acquired technology$900 $846 $54 
Other acquired intangibles386 334 52 
Intellectual property111 63 48 
$1,397 $1,243 $154 
For the three months ended May 31, 2024, amortization expense related to intangible assets amounted to $11 million (three months ended May 31, 2023 - $13 million).
Total additions to intangible assets for the three months ended May 31, 2024 amounted to $1 million (three months ended May 31, 2023 - $2 million). During the three months ended May 31, 2024, 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 May 31, 2024, and assuming no subsequent impairment of the underlying assets, the annual amortization expense for the remainder of fiscal 2025 and each of the five succeeding years is expected to be as follows: fiscal 2025 - $32 million; fiscal 2026 - $36 million; fiscal 2027 - $32 million; fiscal 2028 - $18 million; fiscal 2029 - $6 million and fiscal 2030 - $3 million
Goodwill
Changes to the carrying amount of goodwill during the three months ended May 31, 2024 were as follows:
Carrying Amount
Carrying amount as at February 28, 2023$595 
Goodwill impairment charge(35)
Effect of foreign exchange on non-U.S. dollar denominated goodwill2 
Carrying amount as at February 29, 2024562 
Effect of foreign exchange on non-U.S. dollar denominated goodwill(1)
Carrying amount as at May 31, 2024$561 
Other Long-term Assets
As at May 31, 2024 and February 29, 2024, other long-term assets included long-term receivables related to intellectual property sold in fiscal 2024, see Note 10 under the heading “Patent Sale”, other 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.
Accrued Liabilities
Accrued liabilities is comprised of the following:
 As at
 May 31, 2024February 29, 2024
Operating lease liabilities, current20 20 
Restructuring program liabilities, current portion11 20 
Other81 77 
$112 $117 
Other accrued liabilities included current and 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:
Employee
Termination
Benefits		Facilities
Costs		Total
Balance as at February 28, 20232 1 3 
Charges incurred31 6 37 
Cash payments made(16)(3)(19)
Balance as at February 29, 202417 4 21 
Charges incurred5 3 8 
Cash payments made(15)(2)(17)
Balance as at May 31, 2024
$7 $5 $12 
Current portion$7 $4 $11 
Long-term portion— 11
$7 $5 $12 
The long-term portion of the restructuring liabilities is recorded at present value, determined by measuring the remaining payments at present value using an effective interest rate of 5.7%, and the Company recorded interest expense over time to arrive at the total face value of the remaining payments.
The restructuring charges included employee termination benefits and facilities costs to better align the Company’s general and administrative and R&D cost profiles to its market competitors, create a more focused sales force and improve profitability and cash flow. Total charges incurred for the three months ended May 31, 2024 and May 31, 2023 were $8 million and $5 million, respectively, recorded within General and administrative on the Consolidated Statements of Operations.