Blackberry 2016 Annual Report Download - page 93

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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
25
The following table summarizes the fair value allocations of the acquisition price of the assets and liabilities acquired
during fiscal 2015:
Assets purchased
Current assets $ 7
Property, plant and equipment 1
Intangible assets 71
Goodwill(1)(4) 85
164
Liabilities assumed
Accounts payable 2
Deferred revenue 8
Deferred income tax liability 18
28
Net non-cash assets acquired 136
Cash acquired 3
Net assets acquired $ 139
Consideration
Cash consideration $ 104
Settlement of acquiree debt(2) 18
Contingent consideration(3)(4) 17
$ 139
______________________________
(1) Goodwill represents the excess of the acquisition price over the fair value of net assets acquired, which is not
expected to be deductible for tax purposes when goodwill results from share purchases.
(2) $18 million in cash was paid to existing debt holders as part of the Movirtu acquisition. The Company assumed the
outstanding balance of the debt.
(3) As part of the Secusmart acquisition, the Company agreed to additional consideration contingent upon the
achievement of certain financial targets, the fair value of which has been determined to be $17 million.
(4) See “Measurement period adjustment” below.
The weighted average amortization period of the acquired technology related to the business acquisitions completed
during the year ended February 28, 2015 is approximately five years.
Measurement period adjustment
On December 1, 2014, the Company acquired all of the issued and outstanding shares of Secusmart for $82 million in
cash and an amount of future contingent consideration that was preliminarily determined to be $8 million. Finalization of
purchase accounting determined that the fair value of this contingent consideration at acquisition was $17 million. As a
result, the Company has recorded a measurement period adjustment to goodwill of $9 million, which is presented
retrospectively.
8. RESTRUCTURING
Resource Alignment Program
During fiscal 2016, the Company commenced the RAP for its device software, hardware and applications business with
the objectives of reallocating Company resources to capitalize on growth opportunities, providing the operational ability
to better leverage contract research and development services relating to its handheld devices, and reaching sustainable
profitability. During fiscal 2016, the Company incurred approximately $344 million in total pre-tax charges related to this
program for employee termination benefits, facilities and manufacturing network simplification costs. Other charges and
cash costs may occur as programs are implemented or changes are completed.