BLACKBERRY LtdBB

BLACKBERRY Ltd Leases Disclosure

10-KFiled Apr 9, 20262 min read
LEASES
The Company has operating leases primarily for corporate offices, vehicle, data center and research and development facilities. The Company’s leases have remaining lease terms of between one month and ten years, some of which may include options to extend the lease for up to 10 years, and some of which may include options to terminate the lease within three months.
The components of lease expense were as follows:
 For the Years Ended
 February 28, 2026February 28, 2025February 29, 2024
Operating lease cost, included in general and administrative$8.9 $13.1 $17.8 

Supplemental cash flow information related to leases was as follows:
 For the Years Ended
 February 28, 2026February 28, 2025February 29, 2024
Cash used in operating activities related to operating lease payments$17.5 $20.6 $27.8 
During the year ended February 28, 2026, the Company entered into $3.4 million (February 28, 2025 - $7.5 million) in lease obligations and recognized a corresponding ROU asset of $3.4 million (February 28, 2025 - $7.5 million).
During the year ended February 28, 2026, the Company incurred losses of $1.2 million (February 28, 2025 - $6.9 million; February 29, 2024 - $6.9 million) on LLA impairment of ROU assets, as described in Note 4. The Company also had sublease income during the year ended February 28, 2026 of $3.9 million (February 28, 2025 - $3.9 million; February 29, 2024 - $3.6 million) and incurred short-term lease costs of $2.2 million (February 28, 2025 - $2.3 million; February 29, 2024 - $2.5 million).
Supplemental consolidated balance sheet information related to leases was as follows:
 As at
 February 28, 2026February 28, 2025
Operating leases
Operating lease assets
Operating lease ROU assets $16.7 $22.0 
Operating lease liabilities
Accrued liabilities $9.5 $15.0 
Operating lease liabilities 18.8 28.7 
Total operating lease liabilities $28.3 $43.7 
 As at
 February 28, 2026February 28, 2025
Weighted average remaining lease term
Operating leases2.9 years3.2 years
Weighted average discount rate
Operating lease4.5 %4.2 %
Maturities of undiscounted lease liabilities were as follows:
 As at
February 28, 2026
 Operating Leases
Fiscal year 2027$11.1 
Fiscal year 202812.2 
Fiscal year 20293.6 
Fiscal year 20302.2 
Fiscal year 20311.9 
Thereafter 0.9 
Total future minimum lease payments 31.9 
Less:
Imputed interest(3.6)
Total $28.3 

Historical Timeline

Fiscal YearFiled
2026Apr 9, 2026Showing above
2025Apr 2, 2025
2024Apr 4, 2024
2023Mar 31, 2023
2022Apr 1, 2022
2021Mar 31, 2021
2020Apr 7, 2020

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

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