Blackberry 2015 Annual Report Download - page 93

BlackBerry Limited
Notes to the Consolidated Financial Statements
In millions of United States dollars, except share and per share data, and except as otherwise indicated
18
See “Inventories” in Note 1 for a description of the Company's accounting policies regarding inventory.
During fiscal 2015, the Company recorded primarily non-cash, pre-tax charges of approximately $95 million relating to
the write-down of certain inventories and a recovery in supply commitments of $33 million.
During fiscal 2014, the Company shipped devices to its carrier and distributor partners to support new and continuing
product launches and meet expected levels of end customer demand. However, the sell-through levels for BlackBerry 10
smartphones decreased significantly during fiscal 2014 due to the maturing smartphone market, very intense competition
and, the Company believes, the uncertainty created by the Company's recently completed strategic review process. These
factors caused the number of BlackBerry 10 devices in the channel to increase above the Company's expectations, which
in turn caused the Company to reassess and revise its future demand assumptions for finished products, semi-finished
goods and raw materials. The Company also made the decision to cancel plans to launch two devices to mitigate the
identified inventory risk. Based on these revised demand assumptions, the Company recorded primarily non-cash, pre-tax
charges of $1.6 billion against inventory and $782 million in supply commitment charges related to BlackBerry 10
devices.
During fiscal 2013, the company recorded primarily non-cash, pre-tax charges of approximately $241 million in inventory
write-down and $192 million in supply commitment charges.
Other current assets
As at February 28, 2015, other current assets included $199 million in deferred cost of sales (March 1, 2014 - $356
million), as well as derivative instruments, among other items, none of which were greater than 5% of the current assets
balance.
Property, plant and equipment, net
Property, plant and equipment were comprised of the following:
As at
February 28, 2015 March 1, 2014
Cost
Land $ 26 $ 108
Buildings, leasehold improvements and other 423 905
BlackBerry operations and other information technology 1,236 1,297
Manufacturing equipment, research and development equipment and tooling 211 566
Furniture and fixtures 20 27
1,916 2,903
Accumulated amortization 1,360 1,767
Net book value $ 556 $ 1,136
As at February 28, 2015, the carrying amount of assets under construction was $2 million (March 1, 2014 - $45 million).
Of this amount, $1 million was included in buildings, leasehold improvements and other (March 1, 2014 - $34 million);
nil was included in BlackBerry operations and other information technology (March 1, 2014 - $2 million) and $1 million
was included in manufacturing equipment, research and development equipment, and tooling (March 1, 2014 - $9
million).
For the year ended February 28, 2015, amortization expense related to property, plant and equipment was $184 million
(March 1, 2014 - $532 million; March 2, 2013 - $721 million).