BlackBerry Limited, the smartphone manufacturer reported a $2,748 million impairment loss on its income statement during the year ended March I, 2014. You are interested in further examining this and any other impairment losses at BlackBerry and have identified the financial statement excerpts on the fol lowing pages to further analyze. Refer to these financial statements excerpts and Exhibit 12.2 in the text to answer the following questions:

Required:

a. What types of long-lived assets does BlackBerry report? What is the dollar amount and percent change in total and by each type of long-lived asset from March 2, 2013, to March 1, 2014? What are long-lived assets in total and by type as a percent of total assets at March 1, 2014, and March 2, 2013?

b. What is the total amount of impairment losses Black Berry reported in the years ended March 1, 2014, March 2, 2013, and March 3, 2012? To what types of assets do the impairment losses relate?

c. What is the amount of impairment losses on intangible assets that BlackBerry reported for the years ended March 1, 2014, March 2, 2013, and March 3, 2012? To what type of intangible asset do the
losses relate?

d. Compute the percent change in operating income for all years. What would the percent change in operating income be excluding the impairment losses? Comment on how the inclusion or exclusion of impairment losses affects the percentage change in operating income and the trend in operating income.

5. Consolidated Balance Sheets Details impairment of long-lived assets
During fiscal 2014, the Company recorded the LLA impairment Charge of approximately $2.7 billion, of which $852 million of the charge was applicable 10 property, plant, and equipment and $1.9 billion was applicable t o intangible assets.

Intangible assets, net

Intangible assets were comprised of the following

During fiscal 2014. the additions to intangible assets primarily consisted of payments relating to amended or renewed licensing agreements. a s well as agreements with third parties for the use of intellectual property, software. messagi ng services and other BlackBerry related features.

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BlackBerry Limited Incorporated under the Laws of Ontario (United States dolars, in millions} Consolidated Balance Sheets At March 2, 2013 March 1, 2014 Assets Current Cash and cashequivalents $1,579 $ 1,549 1, 105 Shoit-term investments 950 Accounts receivabe, net 972 2,353 Other receivables 152 272 Inventories 603 244 597 Income taxes receivable 373 Other current assets 505 469 Deferred income tax asset 73 139 Assets he d for sale 209 354 5,067 7,44 1 Long teim investments 129 221 Property plant and equipment, net 942 2,073 Intangible assets, net 1,424 3,430 $7,552 $13,165 BlackBery Lim ted (United States dolla rs, in millions, except per share data) Consolidated Statements of Operations For the Year Ended March 1, 2014 March 2. 2013 March 3, 2012 Revenue $ 6,902 S 3,880 Hardware and other $14.031 Serv ce and software 4.171 4.392 2933 18,423 6,813 11,073 Cost of sales Hardware and other 6,383 7060 11,217 Serv ce and sof tware 473 579 631 7,639 6,856 11,848 Gross margin (43) 3,434 6.575 Operating expenses Research and development 1,286 1,509 1,556 Sel ng, marketing and administrat on 2,111 2,103 2,600 Amartizat on 606 714 567 Impaiment of long-kved assets 2,748 Impairment of goodwll 335 355 Debentures fair value adjustment 377 4,669 5 078 7,120 Operating income iloss) $17, 163) $ (1.235) $1,497 At March 1, 2014 Accumulated Cost Amortization Net Book Value Acquired techno ogy $ 387 $ 284 $ 103 Intel ectuel property 2,176 $2,563 855 1,321 $1.424 $1,139 At March 2, 2013 Accumula ted Net Book Value $ 175 Cost Amortization $ 432 $ 257 Acquired techno ogy Intel ectual property 4,382 1.127 3,255 $4,814 $1.384 $3,430