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Fair Value Measurements, Cash, Cash Equivalents and Investments | 3 Months Ended
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May 31, 2024
Cash and Cash Equivalents [Abstract] |
Fair Value Measurements, Cash, Cash Equivalents and Investments | FAIR VALUE MEASUREMENTS, CASH, CASH EQUIVALENTS AND INVESTMENTS Fair Value The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use in pricing the asset or liability, such as inherent risk, non-performance risk and credit risk. The Company applies the following fair value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value into three levels: •Level 1 - Unadjusted quoted prices at the measurement date for identical assets or liabilities in active markets. •Level 2 - Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. •Level 3 - Significant unobservable inputs that are supported by little or no market activity. The fair value hierarchy also requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company’s cash and cash equivalents, accounts receivable, other receivables, accounts payable and accrued liabilities are carried at amounts that approximate their fair values (Level 2 measurement) due to their short maturities. Recurring Fair Value Measurements In determining the fair value of investments held, the Company primarily relies on an independent third-party valuator for the fair valuation of securities. The Company also reviews the inputs used in the valuation process and assesses the pricing of the securities for reasonableness after conducting its own internal collection of quoted prices from brokers. Fair values for all investment categories provided by the independent third-party valuator that are in excess of 0.5% from the fair values determined by the Company are communicated to the independent third-party valuator for consideration of reasonableness. The independent third-party valuator considers the information provided by the Company before determining whether a change in their original pricing is warranted. When the Company concludes that there is a significant financing component included within a contract with a customer due to timing differences between the fulfillment of certain performance obligations and the receipt of payment for those performance obligations, the Company determines the present value of the future consideration utilizing the discount rate that would be reflected in a separate financing transaction between the customer and the Company at contract inception based upon the credit characteristics of the customer receiving financing in the contract. For a description of how the fair value of the 2020 Debentures (as defined in Note 5) was determined, see the “Convertible debentures” accounting policies in Note 1 to the Annual Financial Statements. Non-Recurring Fair Value Measurements Upon the occurrence of certain events, the Company re-measures the fair value of non-marketable equity investments for which it utilizes the measurement alternative, and long-lived assets, including property, plant and equipment, operating lease ROU assets, intangible assets and goodwill if an impairment or observable price adjustment is recognized in the current period. Non-Marketable Equity Investments Measured Using the Measurement Alternative Non-marketable equity investments measured using the measurement alternative include investments in privately held companies without readily determinable fair values in which the Company does not own a controlling interest or have significant influence. The estimation of fair value used in the fair value measurements required the use of significant unobservable inputs, and as a result, the fair value measurements were classified as Level 3. Impairment of Long-Lived Assets During the three months ended May 31, 2024, the Company exited certain leased facilities and recorded a pre-tax and after-tax impairment charge of $3 million related to the operating lease right-of-use (“ROU”) assets and property, plant and equipment associated with those facilities (three months ended May 31, 2023 - nil). The impairment was determined by comparing the fair value of the impacted ROU asset to the carrying value of the asset as of the impairment measurement date, as required under ASC Topic 360, Property, Plant, and Equipment, using Level 3 inputs. The fair value of the ROU asset was based on the estimated sublease income for certain facilities taking into consideration the estimated time period it will take to obtain a sublessor, the applicable discount rate and the sublease rate, which are considered unobservable inputs. The Company conducts an evaluation of the related liabilities and expenses and revises its assumptions and estimates as appropriate as new or updated information becomes available. The fair value measurement of ROU impaired assets is classified as Level 3. Cash, Cash Equivalents and Investments The components of cash, cash equivalents and investments by fair value level as at May 31, 2024 were as follows:
| Cost Basis (1) |  | Unrealized Gains |  | Unrealized Losses |  |  |  | Fair Value |  | Cash and Cash Equivalents |  | Short-term Investments |  | Long-term Investments |  | Restricted Cash and Cash Equivalents |  |
Bank balances | $ | 92 |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | 92 |  |  | $ | 92 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  |
Other investments | 28 |  |  | 6 |  |  | — |  |  |  |  | 34 |  |  | — |  |  | — |  |  | 34 |  |  | — |  |  |
| 120 |  |  | 6 |  |  | — |  |  |  |  | 126 |  |  | 92 |  |  | — |  |  | 34 |  |  | — |  |  |
Level 1: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity securities | 10 |  |  | — |  |  | (10) |  |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  |
Level 2: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Term deposits, and certificates of deposits | 13 |  |  | — |  |  | — |  |  |  |  | 13 |  |  | — |  |  | — |  |  | — |  |  | 13 |  |  |
Bankers' acceptances/bearer deposit notes | 12 |  |  | — |  |  | — |  |  |  |  | 12 |  |  | 12 |  |  | — |  |  | — |  |  | — |  |  |
Commercial paper | 89 |  |  | — |  |  | — |  |  |  |  | 89 |  |  | 28 |  |  | 61 |  |  | — |  |  | — |  |  |
Non-U.S. promissory notes | 26 |  |  | — |  |  | — |  |  |  |  | 26 |  |  | 11 |  |  | 15 |  |  | — |  |  | — |  |  |
Non-U.S. treasury bills | 4 |  |  | — |  |  | — |  |  |  |  | 4 |  |  | — |  |  | — |  |  | — |  |  | 4 |  |  |
U.S. treasury bills | 10 |  |  | — |  |  | — |  |  |  |  | 10 |  |  | — |  |  | 10 |  |  | — |  |  | — |  |  |
| 154 |  |  | — |  |  | — |  |  |  |  | 154 |  |  | 51 |  |  | 86 |  |  | — |  |  | 17 |  |  |
Level 3: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other investments | 2 |  |  | 1 |  |  | — |  |  |  |  | 3 |  |  | — |  |  | — |  |  | 3 |  |  | — |  |  |
| $ | 286 |  |  | $ | 7 |  |  | $ | (10) |  |  |  |  | $ | 283 |  |  | $ | 143 |  |  | $ | 86 |  |  | $ | 37 |  |  | $ | 17 |  |  |
______________________________ (1) Cost basis for other investments includes the effect of returns of capital and impairment. The components of cash, cash equivalents and investments by fair value level as at February 29, 2024 were as follows:
| Cost Basis (1) |  | Unrealized Gains |  | Unrealized Losses |  |  |  | Fair Value |  | Cash and Cash Equivalents |  | Short-term Investments |  | Long-term Investments |  | Restricted Cash and Cash Equivalents |  |
Bank balances | $ | 96 |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | 96 |  |  | $ | 96 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  |
Other investments | 30 |  |  | 6 |  |  | — |  |  |  |  | 36 |  |  | — |  |  | — |  |  | 36 |  |  | — |  |  |
| 126 |  |  | 6 |  |  | — |  |  |  |  | 132 |  |  | 96 |  |  | — |  |  | 36 |  |  | — |  |  |
Level 1: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity securities | 10 |  |  | — |  |  | (10) |  |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  |
Level 2: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Term deposits, and certificates of deposits | 21 |  |  | — |  |  | — |  |  |  |  | 21 |  |  | — |  |  | — |  |  | — |  |  | 21 |  |  |
Bearer deposit notes | 53 |  |  | — |  |  | — |  |  |  |  | 53 |  |  | 28 |  |  | 25 |  |  | — |  |  | — |  |  |
Commercial paper | 47 |  |  | — |  |  | — |  |  |  |  | 47 |  |  | 15 |  |  | 32 |  |  | — |  |  | — |  |  |
Non-U.S. promissory notes | 35 |  |  | — |  |  | — |  |  |  |  | 35 |  |  | 30 |  |  | 5 |  |  | — |  |  | — |  |  |
U.S. treasury bills | 10 |  |  | — |  |  | — |  |  |  |  | 10 |  |  | 6 |  |  | — |  |  | — |  |  | 4 |  |  |
| 166 |  |  | — |  |  | — |  |  |  |  | 166 |  |  | 79 |  |  | 62 |  |  | — |  |  | 25 |  |  |
| $ | 302 |  |  | $ | 6 |  |  | $ | (10) |  |  |  |  | $ | 298 |  |  | $ | 175 |  |  | $ | 62 |  |  | $ | 36 |  |  | $ | 25 |  |  |
______________________________ (1) Cost basis for other investments includes the effect of returns of capital and impairment. As at May 31, 2024, the Company had non-marketable equity investments without readily determinable fair value of $37 million (February 29, 2024 - $36 million). During the three months ended May 31, 2024, the Company recorded an upward adjustment of $1 million to the carrying value of a certain non-marketable equity investment without readily determinable fair value resulting from observable price changes in orderly transactions for identical or similar securities which have been included in investment income, net on the Company’s consolidated statements of operations. As of May 31, 2024, the Company has recorded a cumulative impairment of $3 million to the carrying value of certain other non-marketable equity investments without readily determinable fair value (February 29, 2024 - $3 million). There were no realized gains or losses on available-for-sale securities for the three months ended May 31, 2024 and May 31, 2023. The Company has restricted cash and cash equivalents, consisting of cash and securities pledged as collateral to major banking partners in support of the Company’s requirements for letters of credit. These letters of credit support certain leasing arrangements entered into in the ordinary course of business. The letters of credit are for terms ranging from one month to one year. The Company is legally restricted from accessing these funds during the term of the leases for which the letters of credit have been issued; however, the Company can continue to invest the funds and receive investment income thereon. The following table provides a reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents as at May 31, 2024 and February 29, 2024 from the consolidated balance sheets to the consolidated statements of cash flows:
| As at
| May 31, 2024 |  | February 29, 2024
Cash and cash equivalents | $ | 143 |  |  | $ | 175 |
Restricted cash and cash equivalents | 17 |  |  | 25 |
Total cash, cash equivalents, restricted cash, and restricted cash equivalents presented in the consolidated statements of cash flows | $ | 160 |  |  | $ | 200 |
The contractual maturities of available-for-sale investments as at May 31, 2024 and February 29, 2024 were as follows:
| As at |  |
| May 31, 2024 |  |  |  | February 29, 2024 |  |
| Cost Basis |  | Fair Value |  |  |  | Cost Basis |  | Fair Value |  |
Due in one year or less | $ | 154 |  |  | $ | 154 |  |  |  |  | $ | 166 |  |  | $ | 166 |  |  |
No fixed maturity | 10 |  |  | — |  |  |  |  | 10 |  |  | — |  |  |
| $ | 164 |  |  | $ | 154 |  |  |  |  | $ | 176 |  |  | $ | 166 |  |  |
As at May 31, 2024 and February 29, 2024, the Company had no available-for-sale debt securities with continuous unrealized losses

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- Definition The entire disclosure of the components of cash, cash equivalents, and short-term investments. Short-term investments may include current marketable securities. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/320/tableOfContent + Details
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