Blackberry 2016 Annual Report Download - page 69

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1
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
1. BLACKBERRY LIMITED AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND CRITICAL
ACCOUNTING ESTIMATES
BlackBerry Limited (the “Company”) is securing a connected world, delivering innovative solutions across the entire
mobile ecosystem and beyond. The Company secures the world’s most sensitive data across all endpoints – from cars to
smartphones – making the mobile-first enterprise vision a reality. Founded in 1984 and based in Waterloo, Ontario, the
Company operates offices in North America, Europe, Middle East and Africa, Asia Pacific and Latin America. The
Company’s common shares are listed on the NASDAQ Global Select Market (NASDAQ: BBRY) and the Toronto Stock
Exchange (TSX: BB), and its unsecured convertible debentures due in 2020 (the “Debentures”) are listed on the Toronto
Stock Exchange (TSX: BB.DB.U).
Basis of Presentation and Preparation
The consolidated financial statements include the accounts of all subsidiaries of the Company with intercompany
transactions and balances eliminated on consolidation. All of the Company’s subsidiaries are wholly-owned. These
consolidated financial statements have been prepared by management in accordance with United States generally accepted
accounting principles (“U.S. GAAP”) on a basis consistent for all periods presented except as described in Note 2. Certain
of the comparative figures have been reclassified to conform to the current year’s presentation.
Change in Fiscal Year
Effective in the fourth quarter of fiscal 2016, the Company changed its fiscal year from a 52 or 53 week year ending the
last Saturday in February or the first Saturday in March to a calendar basis ending the last day of February. The purpose of
this change is to be consistent with common practice in the software industry. The Company believes this is appropriate
due to its increased emphasis on software and its completed acquisitions of software companies with recurring revenue
streams. The Company does not believe that the impact of the change is material.
Accordingly, the Company’s fiscal quarters will end on the last days of May, August, November, and February as follows:
New date Original date
Fourth quarter and year end, fiscal 2016 February 29, 2016 February 27, 2016
First quarter, fiscal 2017 May 31, 2016 May 28, 2016
Second quarter, fiscal 2017 August 31, 2016 August 27, 2016
Third quarter, fiscal 2017 November 30, 2016 November 26, 2016
Fourth quarter and year end, fiscal 2017 February 28, 2017 February 25, 2017
The impact of the change for the fourth quarter and year end, fiscal 2016, will be as follows:
Three months ended
February 2016 Year ended February
2016
Days in period prior to change 91 364
Days in period post-change 93 366
Difference 2 2
The impact of the change for fiscal 2017 will be as follows:
First quarter Second quarter Third quarter Fourth quarter
Days in period prior to change 91 91 91 91
Days in period post-change 92 92 91 90
Difference 1 1 — (1)
The prior year comparative figures reported in the consolidated financial statements will continue to be presented based
on the Company’s previous fiscal calendar. Comparability between fiscal quarters and fiscal year ends may be affected by
varying lengths of the period. Accordingly, fiscal 2016 was two days longer than fiscal 2015. Each of the first and second
quarters of fiscal 2017 will be one day longer than the first and second quarters of fiscal 2016. The third quarter of fiscal