Blackberry 2016 Annual Report Download - page 88
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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
20
For the year ended February 29, 2016, amortization expense related to property, plant and equipment amounted to $124
million (February 28, 2015 - $184 million; March 1, 2014 - $532 million).
Intangible assets, net
Intangible assets comprised the following:
As at February 29, 2016
Cost Accumulated
Amortization Net Book
Value
Acquired technology $ 677 $ 367 $ 310
Intellectual property 1,437 704 733
Other acquired intangibles 197 27 170
$ 2,311 $ 1,098 $ 1,213
As at February 28, 2015
Cost Accumulated
Amortization Net Book
Value
Acquired technology $ 451 $ 315 $ 136
Intellectual property 2,545 1,314 1,231
Other acquired intangibles 22 14 8
$ 3,018 $ 1,643 $ 1,375
Other acquired intangibles include items such as customer relationships and brand.
For the year ended February 29, 2016, amortization expense related to intangible assets amounted to $492 million
(February 28, 2015 - $510 million; March 1, 2014 - $738 million).
Total additions to intangible assets in fiscal 2016 amounted to $477 million (fiscal 2015 - $481 million). During fiscal
2016, the additions to intangible assets primarily consisted of acquired technology and other acquired intangibles from
business acquisitions as described in Note 7. Other additions to intangible assets included patent applications and
maintenance and license agreements with third parties for the use of intellectual property.
Based on the carrying value of the identified intangible assets as at February 29, 2016, and assuming no subsequent
impairment of the underlying assets, the annual amortization expense for each of the succeeding years is expected to be as
follows: fiscal 2017 - $270 million; fiscal 2018 - $229 million; fiscal 2019 - $171 million; fiscal 2020 - $153 million; and
fiscal 2021 - $130 million.
The weighted average remaining useful lives of the intangible assets are as follows:
As at
February 29, 2016 February 28, 2015
Acquired technology 4.4 years 3.6 years
Intellectual property 7.7 years 5.7 years
Other acquired intangibles 6.0 years 3.5 years
Abandonment/impairment of long-lived assets
During fiscal 2016 and as part of its resource alignment program (the “RAP”) as described in Note 8, the Company
completed a targeted review of the individual patents composing its patent portfolio. As a result of this review, the
Company ceased enforcement and abandoned legal right and title to patents with a cost of $592 million, accumulated
amortization of $456 million, and a net book value of approximately $136 million (fiscal 2015 - $49 million, $15 million
and $34 million, respectively).
See “Impairment of long-lived assets” in Note 1 for a description of how LLA impairment is tested. There were no LLA
impairment charges taken in fiscal 2015.