Blackberry 2016 Annual Report Download - page 87

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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
19
6. CONSOLIDATED BALANCE SHEETS DETAILS
Accounts receivable, net
The allowance for doubtful accounts as at February 29, 2016 was $10 million (February 28, 2015 - $10 million).
There were no customers that comprised more than 10% of accounts receivable as at February 29, 2016 (February 28,
2015 – no customers that comprised more than 10%).
Inventories
Inventories comprised the following:
As at
February 29, 2016 February 28, 2015
Raw materials $ 46 $ 11
Work in process 32 62
Finished goods 65 49
$ 143 $ 122
See “Inventories” in Note 1 for a description of the Company’s accounting policies regarding inventory.
During fiscal 2016, the Company recorded primarily non-cash, pre-tax charges of approximately $36 million relating to
the write-down of certain inventories and a recovery in supply commitments of $3 million (fiscal 2015 - $95 million in
inventory write-down and $33 million recovery in supply commitments).
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 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.
Other current assets
Other current assets include items such as deferred cost of sales and prepaid expenses, among other items, none of which
were greater than 5% of the current assets balance in all years presented.
Property, plant and equipment, net
Property, plant and equipment comprised the following:
As at
February 29, 2016 February 28, 2015
Cost
Land $ 26 $ 26
Buildings, leasehold improvements and other 397 423
BlackBerry operations and other information technology 1,183 1,236
Manufacturing equipment, research and development equipment and tooling 120 211
Furniture and fixtures 18 20
1,744 1,916
Accumulated amortization 1,332 1,360
Net book value $ 412 $ 556