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BlackBerry Limited
Management’s Discussion and Analysis of Financial Condition and Results of Operations
9
• business acquisition and integration costs incurred through business combinations of approximately $3 million (pre-
tax and after tax).
A reconciliation of these non-GAAP financial measures for the three months and fiscal year ended February 28, 2015 to the
most directly comparable U.S. GAAP measures was included in the Company’s March 27, 2015 press release, and is reflected
in the table below:
For the Three Months Ended February 28, 2015
(in millions) For the Year Ended February 28, 2015
(in millions)
Income Statement
Location Gross Margin
Income (loss)
before
income taxes Net income Gross Margin Loss before
income taxes Net income
(loss)
As reported $ 318 $ (1) $ 28 $ 1,604 $ (385) $ (304)
Rockstar sale adjustment Investment income — (115) (115) — (115) (115)
Debentures fair value
adjustment Debentures fair
value adjustment — 50 50 — 80 80
CORE program charges Cost of sales 1 1 1 23 23 21
CORE program charges Research and
development — 6 6 — 70 63
CORE program charges Selling, marketing
and administration — 51 50 — 229 210
Stock compensation
expense Cost of sales 1 1 1 2 2 2
Stock compensation
expense Research and
development — 4 4 — 15 15
Stock compensation
expense Selling, marketing
and administration — 9 9 — 32 32
Acquired intangibles
amortization Amortization — 9 9 — 38 38
Business acquisition and
integration costs Selling, marketing
and administration — 1 1 — 3 3
Adjusted $ 320 $ 16 $ 44 $ 1,629 $ (8) $ 45
The Company also reported adjusted earnings before interest, income taxes, depreciation and amortization (“EBITDA”) for the
three months and fiscal year ended February 29, 2016 of $78 million and $433 million, respectively, as shown in the table
below:
For the Three
Months Ended
February 29, 2016
(in millions)
For the Year Ended
February 29, 2016
(in millions)
Operating loss $(241) $ (223)
Non-GAAP adjustments to operating loss
Debentures fair value adjustment (40)(430)
RAP charges 180 344
CORE program charges 2 11
Software deferred revenue acquired 23 33
Stock compensation expense 17 60
Acquired intangibles amortization 28 66
Business acquisition and integration costs 10 22
Total non-GAAP adjustments to operating loss 220 106
Non-GAAP operating loss (21)(117)
Amortization 127 616
Acquired intangibles amortization (28)(66)
Adjusted EBITDA $ 78 $ 433
The Company also reported an estimated year-over-year increase in its organic software license revenue for the three months
ended February 29, 2016 of 24%. This is a non-GAAP financial measure that does not have any standardized meaning as
prescribed by U.S. GAAP and is therefore unlikely to be comparable to similar measures presented by other companies.
Organic software license revenue for the fourth quarter of fiscal 2016 consists of the Company’s non-GAAP software and