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Fair Value Measurements, Cash, Cash Equivalents and Investments
 3 Months Ended
May 31, 2020
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.
Recurring Fair Value Measurements
The Company’s cash and cash equivalents, accounts receivable, other receivables, accounts payable and accrued liabilities are measured at an amount that approximates their fair values (Level 2 measurement) due to their short maturities.
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.
The Company’s investments largely consist of securities issued by major corporate and banking organizations, the provincial and federal governments of Canada, international government banking organizations and the United States Department of the Treasury and are all investment grade. The Company also holds a limited amount of equity securities following the initial public offering by the issuer of a previous private equity investment.
Cash, Cash Equivalents and Investments
The components of cash, cash equivalents and investments by fair value level as at May 31, 2020 were as follows:
Cost BasisUnrealized
Gains		Unrealized
Losses		Other-than-
temporary
Impairment		Fair ValueCash and
Cash
Equivalents		Short-term
Investments		Long-term
Investments		Restricted Cash
Bank balances$120  $—  $—  $—  $120  $120  $—  $—  $—  
Other investments33  —  —  —  33  —  —  33  —  
153  —  —  —  153  120  —  33  —  
Level 1:
Equity securities10  —  (8) —  2  —  2  —  —  
Level 2:
Corporate notes/bonds37  —  —  —  37  37  —  —  —  
Term deposits, certificates of deposits, and GICs108  —  —  —  108  10  50  —  48  
Bearer deposit notes131  —  —  —  131  79  52  —  —  
Commercial paper289  —  —  —  289  62  227  —  —  
Non-U.S. promissory notes172  —  —  —  172  4  168  —  —  
Non-U.S. government sponsored enterprise notes38  —  —  —  38  —  38  —  —  
Non-U.S. treasury bills/notes25  —  —  —  25  —  25  —  —  
800  —  —  —  800  192  560  —  48  
$963  $—  $(8) $—  $955  $312  $562  $33  $48  
The components of cash, cash equivalents and investments by fair value level as at February 29, 2020 were as follows:
Cost BasisUnrealized
Gains		Unrealized
Losses		Other-than-
temporary
Impairment		Fair ValueCash and
Cash
Equivalents		Short-term
Investments		Long-term
Investments		Restricted Cash and Cash Equivalents
Bank balances$100  $—  $—  $—  $100  $100  $—  $—  $—  
Other investments32  —  —  —  32  —  —  32  —  
132  —  —  —  132  100  —  32  —  
Level 1:
Equity securities10  —  (8) —  2  —  2  —  —  
Level 2:
Term deposits, certificates of deposits, and GICs118  —  —  —  118  44  25  —  49  
Bankers’ acceptances/bearer deposit notes84  —  —  —  84  30  54  —  —  
Commercial paper276  —  —  —  276  108  168  —  —  
Non-U.S. promissory notes133  —  —  —  133  25  108  —  —  
Non-U.S. government sponsored enterprise notes144  —  —  —  144  —  144  —  —  
Non-U.S. treasury bills/notes56  —  —  —  56  25  31  —  —  
U.S. treasury bills/notes45  —  —  —  45  45  —  —  —  
856  —  —  —  856  277  530  —  49  
$998  $—  $(8) $—  $990  $377  $532  $32  $49  
As at May 31, 2020, the Company had private equity investments without readily determinable fair value of $33 million (February 29, 2020 - $32 million).
There were no realized gains or losses on available-for-sale securities for the three months ended May 31, 2020 (realized losses of nil for the three months ended May 31, 2019).
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 and also support patent litigation in certain jurisdictions. The letters of credit are for terms ranging from one month to five years. 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, 2020 and February 29, 2020 from the consolidated balance sheets to the consolidated statements of cash flows:
As at
May 31, 2020February 29, 2020
Cash and cash equivalents$312  $377  
Restricted cash and cash equivalents48  49  
Total cash, cash equivalents, restricted cash, and restricted cash equivalents presented in the consolidated statements of cash flows
$360  $426  
The contractual maturities of available-for-sale investments as at May 31, 2020 and February 29, 2020 were as follows:
As at
May 31, 2020February 29, 2020
Cost BasisFair ValueCost BasisFair Value
Due in one year or less $800  $800  $856  $856  
No fixed maturity 10  2  10  2  
$810  $802  $866  $858  
As at May 31, 2020, the Company had investments with continuous unrealized losses totaling $8 million, consisting of unrealized losses on equity securities (May 31, 2019 - continuous unrealized losses totaling $10 million).