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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
22
Product Warranty
The change in the Company’s warranty expense and actual warranty experience from March 2, 2013 to February 29,
2016, as well as the accrued warranty obligations, are set forth in the following table:
Accrued warranty obligations as at March 2, 2013 $ 318
Actual warranty experience during fiscal 2014 (357)
Fiscal 2014 warranty provision 270
Adjustments for changes in estimate (27)
Accrued warranty obligations as at March 1, 2014 204
Actual warranty experience during fiscal 2015 (140)
Fiscal 2015 warranty provision 82
Adjustments for changes in estimate (23)
Accrued warranty obligations as at February 28, 2015 123
Actual warranty experience during fiscal 2016 (44)
Fiscal 2016 warranty provision 39
Adjustments for changes in estimate (85)
Accrued warranty obligations as at February 29, 2016 $ 33
During fiscal 2016, the Company’s warranty balance declined significantly as a result of changes in estimate, leading to a
recovery of $85 million or $0.16 per share. The change in estimate resulted from a sustained significant decline in the
return rate of the Company’s handheld devices.
7. BUSINESS ACQUISITIONS
In fiscal 2016, the Company acquired the following businesses:
WatchDox Ltd.
On May 7, 2015, the Company acquired all of the issued and outstanding shares of WatchDox Ltd. (“WatchDox”), a data
security company offering secure enterprise file-sync-and-share solutions, for approximately $59 million. The acquisition
enhances the Company’s commitment to allow organizations to securely connect employees and corporate information across
all mobile and desktop platforms. WatchDox’s technology is being offered independently and as a value added service through
BES12 that complements the Company’s enterprise mobility management portfolio.
AtHoc, Inc.
On September 22, 2015, the Company acquired all of the issued and outstanding shares of AtHoc, Inc. (“AtHoc”), a leading
provider of secure networked crisis communications, for approximately $250 million (including $10 million of future post-
combination employment expense). The acquisition of AtHoc enhances the Company’s mission to provide secure
communication solutions and complements the Company’s enterprise portfolio of cross-platform solutions and trusted global
network to enable new capabilities for safety, security and mission-critical business communications.
Good Technology Corporation
On October 30, 2015, the Company acquired all of the issued and outstanding shares of Good Technology Corporation
(“Good”), a provider of secure mobility solutions, including secure applications and containerization that protects end user
privacy, for approximately $425 million (including $2 million of acquisition related costs and $6 million of future post-
combination employment expense). The acquisition further expanded the Company’s ability to offer a unified, secure mobility
platform with applications for any mobile device on any operating system. Good’s technology is being integrated with
BES12, providing multi-platform support for both mobile and desktop operating system devices.
Encription Limited
On February 19, 2016, the Company acquired all of the issued and outstanding shares of Encription Holdings Limited and
Encription Ireland Limited (“Encription”), a cybersecurity firm based in the United Kingdom, for $8 million of cash
consideration. The acquisition will further expand the Company’s security portfolio and, combined with the Company’s