The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use in pricing the asset or liability, such as inherent risk, non-performance risk and credit risk. The Company applies the following fair value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value into three levels:

•Level 2 - Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

In determining the fair value of investments held, the Company primarily relies on an independent third-party valuator for the fair valuation of securities. The Company also reviews the inputs used in the valuation process and assesses the pricing of the securities for reasonableness after conducting its own internal collection of quoted prices from brokers. Fair values for all investment categories provided by the independent third-party valuator that are in excess of 0.5% from the fair values determined by the Company are communicated to the independent third-party valuator for consideration of reasonableness. The independent third-party valuator considers the information provided by the Company before determining whether a change in their original pricing is warranted.

For a description of how the fair values of the Extension Debentures and 2020 Debentures were determined, see the “Convertible debentures” accounting policies in Note 1. The Extension Debentures are classified as Level 2 and the 2020 Debentures are classified as Level 3.

Upon the occurrence of certain events, the Company re-measures the fair value of non-marketable equity investments for which it utilizes the measurement alternative, and long-lived assets, including property, plant and equipment, operating lease ROU assets, intangible assets and goodwill if an impairment or observable price adjustment is recognized in the current period.

Non-marketable equity investments measured using the measurement alternative include investments in privately held companies without readily determinable fair values in which the Company does not own a controlling interest or have significant influence. The estimation of fair value used in the fair value measurements required the use of significant unobservable inputs, and as a result, the fair value measurements were classified as Level 3.

During the third quarter of fiscal 2025 and in connection with the plans to sell the Cylance business, the Company reorganized its reporting structure resulting in its BlackBerry Spark reporting unit being disaggregated into two separate reporting units: UEM and Cylance. In accordance with ASC 350 Intangibles - Goodwill and Other, the Company conducted a valuation of the individual reporting units and allocated the goodwill associated with the previous BlackBerry Spark reporting unit to the UEM and Cylance reporting units using a relative fair value approach. The valuations of the reporting units were based on a combination of the income approach using a discounted future cash flow model, a market-based approach, and estimated exit value approaches for Cylance using the same critical accounting estimates as disclosed in Note 1. Following the assignment of assets, liabilities, and goodwill to the UEM and Cylance reporting units, the Company compared the carrying values of the reporting units against their fair values and determined no impairment was present in either reporting unit.

During the year ended February 28, 2025, there were no goodwill impairment charges. In its annual goodwill impairment test in the fourth quarter of fiscal 2025, the Company’s estimates indicated the fair values of all its reporting units substantially exceeded their carrying values, such carrying values were expected to be recovered, and there was no goodwill impairment.

During the year ended February 29, 2024, the Company recorded a goodwill impairment charge of $34.8 million in the BlackBerry Spark reporting unit, which was included within the Company’s Cybersecurity segment as disclosed in Note 13. The estimated fair values of the Company’s other reporting units substantially exceeded their carrying values as at the annual goodwill impairment test date. The portion of the BlackBerry Spark goodwill impairment charge allocated to the Cylance reporting unit was based on the same proportion determined in the third quarter of fiscal 2025 in determining the Cylance discontinued operations and assets held for sale for the year ended February 29, 2024. The allocation of the BlackBerry Spark goodwill impairment charge was $15.9 million to the UEM reporting unit of and $18.9 million to the Cylance reporting unit.

During the year ended February 28, 2023, the Company recorded a goodwill impairment charge of $245.4 million in the BlackBerry Spark reporting unit, which was included within the Company’s Cybersecurity segment as disclosed in Note 13. The estimated fair values of the Company’s other reporting units substantially exceeded their carrying values as at the annual goodwill impairment test date. The portion of the BlackBerry Spark goodwill impairment charge allocated to the Cylance reporting unit was based on the same proportion determined in the third quarter of fiscal 2025 in determining discontinued operations and assets held for sale for the year ended February 28, 2023. The allocation of the BlackBerry Spark goodwill impairment charge was $112.1 million to the UEM reporting unit of and $133.3 million to the Cylance reporting unit.

During the year ended February 28, 2025, the Company exited certain leased facilities and recorded a pre-tax and after-tax impairment charge of $9.6 million consisting of $6.9 million related to operating lease ROU assets for certain facilities and $2.7 million related to property, plant and equipment. The impairment was determined by comparing the fair value of the impacted ROU asset to the carrying value of the asset as of the impairment measurement date, as required under ASC Topic 360, Property, Plant, and Equipment, using Level 3 inputs. The fair value of the ROU asset was based on the estimated sublease income for certain facilities taking into consideration the estimated time period it will take to obtain a sublessor, the applicable discount rate and the sublease rate, which are considered unobservable inputs. The Company conducts an evaluation of the related liabilities and expenses and revises its assumptions and estimates as appropriate as new or updated information becomes available. These ROU impaired assets are classified within Level 3 of the fair value hierarchy.

During the year ended February 29, 2024, the Company exited certain leased facilities and recorded a pre-tax and after-tax impairment charge of $7.5 million consisting of $6.9 million related to operating lease ROU assets for certain facilities and $0.6 million related to property, plant and equipment. The Company also conducted regular reviews of the individual patents, both organically generated and acquired, comprising its patent portfolio. As a result of this review, for the year ended February 29, 2024, the Company determined it had an indicator of impairment, as it had ceased enforcement and abandoned the legal right and title to patents with a cost of $15.3 million, accumulated amortization $7.5 million, and net book value of $7.8 million, which is classified as an impairment of long-lived assets on the Company’s consolidated statements of operations.

During the year ended February 28, 2023, the Company recorded a non-cash, pre-tax and after-tax impairment charge of $234.5 million consisting of $231.0 million related to the Company’s UES asset group, which was primarily composed of intangible assets recognized on the acquisition of Cylance and was included within the Company’s Cybersecurity segment as disclosed in Note 12, and $3.5 million related to operating lease ROU assets for certain leased facilities that were exited during the fiscal year. None of the Company’s other asset groups demonstrated indicators of potential impairment.


	Cost Basis (1)		Unrealized Gains		Unrealized Losses		Fair Value		Cash and Cash Equivalents		Short-term Investments		Long-term Investments		Restricted Cash and Cash Equivalents
Bank balances	$	223.7	$	—	$	—	$	223.7	$	223.7	$	—	$	—	$	—
Other investments	23.3		4.9		—		28.2		—		—		28.2		—
	247.0		4.9		—		251.9		223.7		—		28.2		—
Level 1:

Equity securities	10.0		—		(10.0)		—		—		—		—		—


Level 2:
Term deposits, and certificates of deposits	39.3		—		—		39.3		—		30.1		—		9.2
Bearer deposit notes	10.3		—		—		10.3		7.3		3.0		—		—
Commercial paper	55.5		—		—		55.5		27.8		27.7		—		—
Non-U.S. promissory notes	9.8		—		—		9.8		7.9		1.9		—		—

Non-U.S. government sponsored enterprise notes	9.3		—		—		9.3		—		4.9		—		4.4


Corporate notes/bonds	3.5		—		—		3.5		—		3.5		—		—
	127.7		—		—		127.7		43.0		71.1		—		13.6

Level 3:

Equity investments in private companies	30.7		1.2		(1.2)		30.7		—		—		30.7		—

	$	415.4	$	6.1	$	(11.2)	$	410.3	$	266.7	$	71.1	$	58.9	$	13.6


	Cost Basis (1)		Unrealized Gains		Unrealized Losses		Fair Value		Cash and Cash Equivalents		Short-term Investments		Long-term Investments		Restricted Cash and Cash Equivalents
Bank balances	$	96.2	$	—	$	—	$	96.2	$	96.2	$	—	$	—	$	—
Other investments	29.6		6.1		—		35.7		—		—		35.7		—
	125.8		6.1		—		131.9		96.2		—		35.7		—
Level 1:
Equity securities	10.0		—		(10.0)		—		—		—		—		—

Level 2:
Term deposits, and certificates of deposits	21.5		—		—		21.5		—		—		—		21.5
Bearer deposit notes	53.1		—		—		53.1		28.4		24.7		—		—
Commercial paper	46.8		—		—		46.8		14.7		32.1		—		—
Non-U.S. promissory notes	35.4		—		—		35.4		30.2		5.2		—		—



U.S. treasury bills	9.5		—		—		9.5		5.6		—		—		3.9

	166.3		—		—		166.3		78.9		62.0		—		25.4




	$	302.1	$	6.1	$	(10.0)	$	298.2	$	175.1	$	62.0	$	35.7	$	25.4

As at February 28, 2025, the Company had non-marketable equity investments without readily determinable fair value of $58.9 million (February 29, 2024 - $35.7 million) including common shares of Arctic Wolf related to the sale of Cylance as further discussed in Note 3. During the year ended February 28, 2025, there was a $0.2 million impairment recognized relating to non-marketable equity investments without readily determinable fair value (February 29, 2024 and February 28, 2023 - nil). During the year ended February 28, 2025, the Company recorded upward adjustments of $1.2 million and downward adjustments of $2.4 million to the carrying value of certain non-marketable equity investments without readily determinable fair value resulting from observable price changes in orderly transactions for identical or similar securities which have been included in investment income, net on the Company’s consolidated statements of operations. As of February 28, 2025, the Company has recorded a cumulative impairment of $3.0 million to the carrying value of certain other non-marketable equity investments without readily determinable fair value (February 29, 2024 - $3.0 million).

The Company has restricted cash and cash equivalents, consisting of cash and securities pledged as collateral to major banking partners in support of the Company’s requirements for letters of credit and a performance bond that the Company was required to post to support a government contract. These letters of credit support certain leasing arrangements entered into in the ordinary course of business and are for terms ranging from one month to seven years. The Company is legally restricted from accessing these funds during the term of the leases for which the letters of credit have been issued and during the term of the government contract; however, the Company can continue to invest the funds and receive investment income thereon.

The following table provides a reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents as at February 28, 2025, February 29, 2024 and February 28, 2023 from the consolidated balance sheets to the consolidated statements of cash flows:


	As at
	February 28, 2025		February 29, 2024		February 28, 2023
Cash and cash equivalents	$	266.7	$	175.1	$	295.7
Restricted cash and cash equivalents	13.6		25.4		26.6
Total cash, cash equivalents, restricted cash, and restricted cash equivalents presented in the consolidated statements of cash flows	$	280.3	$	200.5	$	322.3