Blackberry 2015 Annual Report Download - page 143

BlackBerry Limited
Management’s Discussion and Analysis of Financial Condition and Results of Operations
32
Operating Activities
The increase in net cash flows provided by operating activities of $972 million primarily reflects the Company's lower amount
of net loss, offset by net changes in working capital.
Investing Activities
During the fiscal year ended February 28, 2015, cash flows used in investing activities were $1.2 billion and included cash
flows used in transactions involving the proceeds on sale or maturity of short-term investments and long-term investments, net
of the costs of acquisitions, in the amount of $894 million, intangible asset additions of $421 million, business acquisitions of
$119 million, acquisitions of property, plant and equipment of $87 million, partially offset by proceeds on the sale of property,
plant and equipment of $348 million. For the same period of the prior fiscal year, cash flows used in investing activities were
$1.0 billion and included intangible asset additions of $1.1 billion, property, plant and equipment additions of $283 million and
business acquisitions of $7 million, offset by cash flows used in transactions involving the proceeds on sale or maturity of
short-term investments and long-term investments, net of the costs of acquisitions, in the amount of $281 million.
During the fiscal year ended February 28, 2015, the additions to intangible assets primarily consisted of payments relating to
amended or renewed licensing agreements, acquired technology and in-process research and development from business
acquisitions, as well as agreements with third parties for the use of intellectual property, software, messaging services and other
BlackBerry related features. The decrease in property, plant and equipment spending for fiscal 2015 was primarily due to the
cost saving initiatives of the CORE program.
Financing Activities
The decrease in cash flows provided by financing activities was $1.2 billion for fiscal 2015 and was primarily attributable to
the receipt in fiscal 2014 of $1.25 billion from the issuance of the Debentures and to the restricted cash used to collateralize
letters of credit during fiscal 2015 as described in Note 3 to the Consolidated Financial Statements, which was partially offset
by an increase in the sale of treasury stock and tax deficiencies related to stock-based compensation.
Aggregate Contractual Obligations
The following table sets out aggregate information about the Company’s contractual obligations and the periods in which
payments are due as at February 28, 2015:
(in millions)
Total Less than One Year One to Three Years Four to Five Years Greater than Five Years
Operating lease obligations $ 179 $ 42 $ 67 $ 44 $ 26
Purchase obligations and commitments 697 634 63 — —
Long-term debt interest and principal
payments 428 75 150 150 53
Total $ 1,304 $ 751 $ 280 $ 194 $ 79
Aggregate contractual obligations amounted to approximately $1.3 billion as at February 28, 2015, including purchase orders
with contract manufacturers in the amount of $394 million. The Company also has commitments on account of capital
expenditures of approximately $2 million included in this total, primarily for manufacturing and information technology,
including service operations. The remaining balance consists of purchase orders or contracts with suppliers of raw materials, as
well as other goods and services utilized in the operations of the Company, including payments on account of licensing
agreements. Total aggregate contractual obligations as at February 28, 2015 decreased by $599 million as compared to the
March 1, 2014 balance of approximately $1.9 billion, which was primarily attributable to a decrease in purchase orders with
contract manufacturers and payments on account of licensing agreements, as well as a decrease in interest payments on the
Debentures, and operating lease commitments.
Debenture Financing and Other Funding Sources
Please see Note 10 to the Consolidated Financial Statements for a description of the Debentures.
The Company has $59 million in collateralized outstanding letters of credit in support of certain leasing arrangements entered
into in the ordinary course of business. Please see Note 3 to the Consolidated Financial Statements for further information
concerning the Company's restricted cash.